Correlation Between Lululemon Athletica and Cleantech Power
Can any of the company-specific risk be diversified away by investing in both Lululemon Athletica and Cleantech Power at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Lululemon Athletica and Cleantech Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lululemon Athletica and Cleantech Power Corp, you can compare the effects of market volatilities on Lululemon Athletica and Cleantech Power and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Lululemon Athletica with a short position of Cleantech Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lululemon Athletica and Cleantech Power.
Diversification Opportunities for Lululemon Athletica and Cleantech Power
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lululemon and Cleantech is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Lululemon Athletica and Cleantech Power Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cleantech Power Corp and Lululemon Athletica is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Lululemon Athletica are associated (or correlated) with Cleantech Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cleantech Power Corp has no effect on the direction of Lululemon Athletica i.e., Lululemon Athletica and Cleantech Power go up and down completely randomly.
Pair Corralation between Lululemon Athletica and Cleantech Power
If you would invest 32,672 in Lululemon Athletica on September 25, 2024 and sell it today you would earn a total of 5,677 from holding Lululemon Athletica or generate 17.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lululemon Athletica vs. Cleantech Power Corp
Performance |
| Timeline |
| Lululemon Athletica |
| Cleantech Power Corp |
Lululemon Athletica and Cleantech Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lululemon Athletica and Cleantech Power
The main advantage of trading using opposite Lululemon Athletica and Cleantech Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lululemon Athletica position performs unexpectedly, Cleantech Power can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Cleantech Power will offset losses from the drop in Cleantech Power's long position.| Lululemon Athletica vs. Amer Sports, | Lululemon Athletica vs. Brunswick | Lululemon Athletica vs. BRP Inc | Lululemon Athletica vs. Vision Marine Technologies |
| Cleantech Power vs. Legacy Education | Cleantech Power vs. Apple Inc | Cleantech Power vs. NVIDIA | Cleantech Power vs. Microsoft |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Global Correlations module to find global opportunities by holding instruments from different markets.
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