Correlation Between Lululemon Athletica and 42225UAD6
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By analyzing existing cross correlation between Lululemon Athletica and HEALTHCARE TR AMER, you can compare the effects of market volatilities on Lululemon Athletica and 42225UAD6 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 42225UAD6. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lululemon Athletica and 42225UAD6.
Diversification Opportunities for Lululemon Athletica and 42225UAD6
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lululemon and 42225UAD6 is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Lululemon Athletica and HEALTHCARE TR AMER in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HEALTHCARE TR AMER 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 42225UAD6. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HEALTHCARE TR AMER has no effect on the direction of Lululemon Athletica i.e., Lululemon Athletica and 42225UAD6 go up and down completely randomly.
Pair Corralation between Lululemon Athletica and 42225UAD6
Given the investment horizon of 90 days Lululemon Athletica is expected to generate 7.35 times more return on investment than 42225UAD6. However, Lululemon Athletica is 7.35 times more volatile than HEALTHCARE TR AMER. It trades about 0.03 of its potential returns per unit of risk. HEALTHCARE TR AMER is currently generating about 0.0 per unit of risk. If you would invest 30,827 in Lululemon Athletica on September 3, 2024 and sell it today you would earn a total of 1,239 from holding Lululemon Athletica or generate 4.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 70.4% |
| Values | Daily Returns |
Lululemon Athletica vs. HEALTHCARE TR AMER
Performance |
| Timeline |
| Lululemon Athletica |
| HEALTHCARE TR AMER |
Lululemon Athletica and 42225UAD6 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lululemon Athletica and 42225UAD6
The main advantage of trading using opposite Lululemon Athletica and 42225UAD6 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lululemon Athletica position performs unexpectedly, 42225UAD6 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 42225UAD6 will offset losses from the drop in 42225UAD6's long position.| Lululemon Athletica vs. American Eagle Outfitters | Lululemon Athletica vs. Abercrombie Fitch | Lululemon Athletica vs. Urban Outfitters | Lululemon Athletica vs. Foot Locker |
| 42225UAD6 vs. Dana Inc | 42225UAD6 vs. National Vision Holdings | 42225UAD6 vs. Lululemon Athletica | 42225UAD6 vs. Lucid Group |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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