Correlation Between Lululemon Athletica and AMFAHI
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By analyzing existing cross correlation between Lululemon Athletica and AMFAHI 3833 11 MAR 51, you can compare the effects of market volatilities on Lululemon Athletica and AMFAHI 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 AMFAHI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lululemon Athletica and AMFAHI.
Diversification Opportunities for Lululemon Athletica and AMFAHI
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lululemon and AMFAHI is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Lululemon Athletica and AMFAHI 3833 11 MAR 51 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMFAHI 3833 11 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 AMFAHI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMFAHI 3833 11 has no effect on the direction of Lululemon Athletica i.e., Lululemon Athletica and AMFAHI go up and down completely randomly.
Pair Corralation between Lululemon Athletica and AMFAHI
Given the investment horizon of 90 days Lululemon Athletica is expected to generate 2.03 times less return on investment than AMFAHI. In addition to that, Lululemon Athletica is 1.31 times more volatile than AMFAHI 3833 11 MAR 51. It trades about 0.02 of its total potential returns per unit of risk. AMFAHI 3833 11 MAR 51 is currently generating about 0.05 per unit of volatility. If you would invest 5,773 in AMFAHI 3833 11 MAR 51 on September 12, 2024 and sell it today you would earn a total of 377.00 from holding AMFAHI 3833 11 MAR 51 or generate 6.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 28.1% |
| Values | Daily Returns |
Lululemon Athletica vs. AMFAHI 3833 11 MAR 51
Performance |
| Timeline |
| Lululemon Athletica |
| AMFAHI 3833 11 |
Lululemon Athletica and AMFAHI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lululemon Athletica and AMFAHI
The main advantage of trading using opposite Lululemon Athletica and AMFAHI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lululemon Athletica position performs unexpectedly, AMFAHI 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 AMFAHI will offset losses from the drop in AMFAHI's long position.| Lululemon Athletica vs. American Eagle Outfitters | Lululemon Athletica vs. Abercrombie Fitch | Lululemon Athletica vs. Urban Outfitters | Lululemon Athletica vs. Foot Locker |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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