Correlation Between Lululemon Athletica and ASTRAZENECA
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By analyzing existing cross correlation between Lululemon Athletica and ASTRAZENECA PLC, you can compare the effects of market volatilities on Lululemon Athletica and ASTRAZENECA 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 ASTRAZENECA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lululemon Athletica and ASTRAZENECA.
Diversification Opportunities for Lululemon Athletica and ASTRAZENECA
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lululemon and ASTRAZENECA is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Lululemon Athletica and ASTRAZENECA PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASTRAZENECA PLC 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 ASTRAZENECA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASTRAZENECA PLC has no effect on the direction of Lululemon Athletica i.e., Lululemon Athletica and ASTRAZENECA go up and down completely randomly.
Pair Corralation between Lululemon Athletica and ASTRAZENECA
Given the investment horizon of 90 days Lululemon Athletica is expected to under-perform the ASTRAZENECA. In addition to that, Lululemon Athletica is 5.15 times more volatile than ASTRAZENECA PLC. It trades about -0.16 of its total potential returns per unit of risk. ASTRAZENECA PLC is currently generating about -0.2 per unit of volatility. If you would invest 9,627 in ASTRAZENECA PLC on January 10, 2025 and sell it today you would lose (425.00) from holding ASTRAZENECA PLC or give up 4.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lululemon Athletica vs. ASTRAZENECA PLC
Performance |
| Timeline |
| Lululemon Athletica |
| ASTRAZENECA PLC |
Lululemon Athletica and ASTRAZENECA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lululemon Athletica and ASTRAZENECA
The main advantage of trading using opposite Lululemon Athletica and ASTRAZENECA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lululemon Athletica position performs unexpectedly, ASTRAZENECA 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 ASTRAZENECA will offset losses from the drop in ASTRAZENECA's long position.| Lululemon Athletica vs. American Eagle Outfitters | Lululemon Athletica vs. Abercrombie Fitch | Lululemon Athletica vs. Urban Outfitters | Lululemon Athletica vs. Foot Locker |
| ASTRAZENECA vs. Weyco Group | ASTRAZENECA vs. National CineMedia | ASTRAZENECA vs. Asbury Automotive Group | ASTRAZENECA vs. GMS Inc |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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