Correlation Between Lululemon Athletica and ENTERPRISE
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By analyzing existing cross correlation between Lululemon Athletica and ENTERPRISE PRODS OPER, you can compare the effects of market volatilities on Lululemon Athletica and ENTERPRISE 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 ENTERPRISE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lululemon Athletica and ENTERPRISE.
Diversification Opportunities for Lululemon Athletica and ENTERPRISE
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lululemon and ENTERPRISE is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Lululemon Athletica and ENTERPRISE PRODS OPER in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ENTERPRISE PRODS OPER 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 ENTERPRISE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ENTERPRISE PRODS OPER has no effect on the direction of Lululemon Athletica i.e., Lululemon Athletica and ENTERPRISE go up and down completely randomly.
Pair Corralation between Lululemon Athletica and ENTERPRISE
Given the investment horizon of 90 days Lululemon Athletica is expected to generate 3.96 times more return on investment than ENTERPRISE. However, Lululemon Athletica is 3.96 times more volatile than ENTERPRISE PRODS OPER. It trades about 0.24 of its potential returns per unit of risk. ENTERPRISE PRODS OPER is currently generating about -0.12 per unit of risk. If you would invest 28,676 in Lululemon Athletica on September 13, 2024 and sell it today you would earn a total of 10,640 from holding Lululemon Athletica or generate 37.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 58.14% |
| Values | Daily Returns |
Lululemon Athletica vs. ENTERPRISE PRODS OPER
Performance |
| Timeline |
| Lululemon Athletica |
| ENTERPRISE PRODS OPER |
Lululemon Athletica and ENTERPRISE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lululemon Athletica and ENTERPRISE
The main advantage of trading using opposite Lululemon Athletica and ENTERPRISE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lululemon Athletica position performs unexpectedly, ENTERPRISE 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 ENTERPRISE will offset losses from the drop in ENTERPRISE's long position.| Lululemon Athletica vs. Digital Brands Group | Lululemon Athletica vs. Data Storage | Lululemon Athletica vs. Auddia Inc | Lululemon Athletica vs. DatChat Series A |
| ENTERPRISE vs. Lululemon Athletica | ENTERPRISE vs. NH Foods Ltd | ENTERPRISE vs. Ross Stores | ENTERPRISE vs. Zumiez 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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