Correlation Between Lululemon Athletica and 88579YBH3
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By analyzing existing cross correlation between Lululemon Athletica and 3M CO, you can compare the effects of market volatilities on Lululemon Athletica and 88579YBH3 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 88579YBH3. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lululemon Athletica and 88579YBH3.
Diversification Opportunities for Lululemon Athletica and 88579YBH3
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Lululemon and 88579YBH3 is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Lululemon Athletica and 3M CO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 88579YBH3 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 88579YBH3. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 88579YBH3 has no effect on the direction of Lululemon Athletica i.e., Lululemon Athletica and 88579YBH3 go up and down completely randomly.
Pair Corralation between Lululemon Athletica and 88579YBH3
Given the investment horizon of 90 days Lululemon Athletica is expected to under-perform the 88579YBH3. In addition to that, Lululemon Athletica is 1.78 times more volatile than 3M CO. It trades about -0.38 of its total potential returns per unit of risk. 3M CO is currently generating about -0.32 per unit of volatility. If you would invest 9,992 in 3M CO on December 4, 2024 and sell it today you would lose (333.00) from holding 3M CO or give up 3.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 42.86% |
| Values | Daily Returns |
Lululemon Athletica vs. 3M CO
Performance |
| Timeline |
| Lululemon Athletica |
| 88579YBH3 |
Lululemon Athletica and 88579YBH3 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lululemon Athletica and 88579YBH3
The main advantage of trading using opposite Lululemon Athletica and 88579YBH3 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lululemon Athletica position performs unexpectedly, 88579YBH3 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 88579YBH3 will offset losses from the drop in 88579YBH3's long position.| Lululemon Athletica vs. American Eagle Outfitters | Lululemon Athletica vs. Abercrombie Fitch | Lululemon Athletica vs. Urban Outfitters | Lululemon Athletica vs. Foot Locker |
| 88579YBH3 vs. Westrock Coffee | 88579YBH3 vs. Idaho Strategic Resources | 88579YBH3 vs. ioneer Ltd American | 88579YBH3 vs. Cortus Metals |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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