Correlation Between Lululemon Athletica and SOCGEN
Specify exactly 2 symbols:
By analyzing existing cross correlation between Lululemon Athletica and SOCGEN 6447 12 JAN 27, you can compare the effects of market volatilities on Lululemon Athletica and SOCGEN 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 SOCGEN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lululemon Athletica and SOCGEN.
Diversification Opportunities for Lululemon Athletica and SOCGEN
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lululemon and SOCGEN is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Lululemon Athletica and SOCGEN 6447 12 JAN 27 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SOCGEN 6447 12 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 SOCGEN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SOCGEN 6447 12 has no effect on the direction of Lululemon Athletica i.e., Lululemon Athletica and SOCGEN go up and down completely randomly.
Pair Corralation between Lululemon Athletica and SOCGEN
Given the investment horizon of 90 days Lululemon Athletica is expected to under-perform the SOCGEN. In addition to that, Lululemon Athletica is 9.32 times more volatile than SOCGEN 6447 12 JAN 27. It trades about -0.06 of its total potential returns per unit of risk. SOCGEN 6447 12 JAN 27 is currently generating about -0.01 per unit of volatility. If you would invest 10,092 in SOCGEN 6447 12 JAN 27 on September 4, 2024 and sell it today you would lose (20.00) from holding SOCGEN 6447 12 JAN 27 or give up 0.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 51.42% |
| Values | Daily Returns |
Lululemon Athletica vs. SOCGEN 6447 12 JAN 27
Performance |
| Timeline |
| Lululemon Athletica |
| SOCGEN 6447 12 |
Lululemon Athletica and SOCGEN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lululemon Athletica and SOCGEN
The main advantage of trading using opposite Lululemon Athletica and SOCGEN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lululemon Athletica position performs unexpectedly, SOCGEN 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 SOCGEN will offset losses from the drop in SOCGEN'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 |
| SOCGEN vs. Hurco Companies | SOCGEN vs. Lululemon Athletica | SOCGEN vs. Asbury Automotive Group | SOCGEN vs. Revolve Group LLC |
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 Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |