Correlation Between Lululemon Athletica and 26439XAC7
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By analyzing existing cross correlation between Lululemon Athletica and DCP Midstream Operating, you can compare the effects of market volatilities on Lululemon Athletica and 26439XAC7 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 26439XAC7. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lululemon Athletica and 26439XAC7.
Diversification Opportunities for Lululemon Athletica and 26439XAC7
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lululemon and 26439XAC7 is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Lululemon Athletica and DCP Midstream Operating in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DCP Midstream Operating 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 26439XAC7. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DCP Midstream Operating has no effect on the direction of Lululemon Athletica i.e., Lululemon Athletica and 26439XAC7 go up and down completely randomly.
Pair Corralation between Lululemon Athletica and 26439XAC7
Given the investment horizon of 90 days Lululemon Athletica is expected to generate 2.23 times more return on investment than 26439XAC7. However, Lululemon Athletica is 2.23 times more volatile than DCP Midstream Operating. It trades about 0.16 of its potential returns per unit of risk. DCP Midstream Operating is currently generating about -0.15 per unit of risk. If you would invest 31,813 in Lululemon Athletica on September 5, 2024 and sell it today you would earn a total of 2,253 from holding Lululemon Athletica or generate 7.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 81.82% |
| Values | Daily Returns |
Lululemon Athletica vs. DCP Midstream Operating
Performance |
| Timeline |
| Lululemon Athletica |
| DCP Midstream Operating |
Lululemon Athletica and 26439XAC7 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lululemon Athletica and 26439XAC7
The main advantage of trading using opposite Lululemon Athletica and 26439XAC7 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lululemon Athletica position performs unexpectedly, 26439XAC7 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 26439XAC7 will offset losses from the drop in 26439XAC7's long position.| Lululemon Athletica vs. VF Corporation | Lululemon Athletica vs. Levi Strauss Co | Lululemon Athletica vs. Under Armour A | Lululemon Athletica vs. Columbia Sportswear |
| 26439XAC7 vs. Coupang LLC | 26439XAC7 vs. SunLink Health Systems | 26439XAC7 vs. Grocery Outlet Holding | 26439XAC7 vs. Lululemon Athletica |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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