Correlation Between Lululemon Athletica and 02378MAA9
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By analyzing existing cross correlation between Lululemon Athletica and AAL 35 15 FEB 32, you can compare the effects of market volatilities on Lululemon Athletica and 02378MAA9 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 02378MAA9. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lululemon Athletica and 02378MAA9.
Diversification Opportunities for Lululemon Athletica and 02378MAA9
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Lululemon and 02378MAA9 is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Lululemon Athletica and AAL 35 15 FEB 32 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AAL 35 15 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 02378MAA9. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AAL 35 15 has no effect on the direction of Lululemon Athletica i.e., Lululemon Athletica and 02378MAA9 go up and down completely randomly.
Pair Corralation between Lululemon Athletica and 02378MAA9
Given the investment horizon of 90 days Lululemon Athletica is expected to generate 0.46 times more return on investment than 02378MAA9. However, Lululemon Athletica is 2.19 times less risky than 02378MAA9. It trades about 0.02 of its potential returns per unit of risk. AAL 35 15 FEB 32 is currently generating about 0.01 per unit of risk. If you would invest 38,349 in Lululemon Athletica on September 12, 2024 and sell it today you would earn a total of 1,361 from holding Lululemon Athletica or generate 3.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 30.29% |
| Values | Daily Returns |
Lululemon Athletica vs. AAL 35 15 FEB 32
Performance |
| Timeline |
| Lululemon Athletica |
| AAL 35 15 |
Lululemon Athletica and 02378MAA9 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lululemon Athletica and 02378MAA9
The main advantage of trading using opposite Lululemon Athletica and 02378MAA9 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lululemon Athletica position performs unexpectedly, 02378MAA9 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 02378MAA9 will offset losses from the drop in 02378MAA9's long position.| Lululemon Athletica vs. American Eagle Outfitters | Lululemon Athletica vs. Abercrombie Fitch | Lululemon Athletica vs. Urban Outfitters | Lululemon Athletica vs. Foot Locker |
| 02378MAA9 vs. AEP TEX INC | 02378MAA9 vs. US BANK NATIONAL | 02378MAA9 vs. Alphabet Inc Class C | 02378MAA9 vs. InMode |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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