Correlation Between Lululemon Athletica and Saguaro Holdings
Can any of the company-specific risk be diversified away by investing in both Lululemon Athletica and Saguaro Holdings 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 Saguaro Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lululemon Athletica and Saguaro Holdings Corp, you can compare the effects of market volatilities on Lululemon Athletica and Saguaro Holdings 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 Saguaro Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lululemon Athletica and Saguaro Holdings.
Diversification Opportunities for Lululemon Athletica and Saguaro Holdings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lululemon and Saguaro is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Lululemon Athletica and Saguaro Holdings Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saguaro Holdings 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 Saguaro Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saguaro Holdings Corp has no effect on the direction of Lululemon Athletica i.e., Lululemon Athletica and Saguaro Holdings go up and down completely randomly.
Pair Corralation between Lululemon Athletica and Saguaro Holdings
If you would invest 31,846 in Lululemon Athletica on September 12, 2024 and sell it today you would earn a total of 7,864 from holding Lululemon Athletica or generate 24.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Lululemon Athletica vs. Saguaro Holdings Corp
Performance |
| Timeline |
| Lululemon Athletica |
| Saguaro Holdings Corp |
Lululemon Athletica and Saguaro Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lululemon Athletica and Saguaro Holdings
The main advantage of trading using opposite Lululemon Athletica and Saguaro Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lululemon Athletica position performs unexpectedly, Saguaro Holdings 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 Saguaro Holdings will offset losses from the drop in Saguaro Holdings' long position.| Lululemon Athletica vs. American Eagle Outfitters | Lululemon Athletica vs. Abercrombie Fitch | Lululemon Athletica vs. Urban Outfitters | Lululemon Athletica vs. Foot Locker |
| Saguaro Holdings vs. Chiba Bank Ltd | Saguaro Holdings vs. Mill City Ventures | Saguaro Holdings vs. Pentair PLC | Saguaro Holdings vs. AerSale Corp |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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