Correlation Between Lululemon Athletica and Zane Interactive
Can any of the company-specific risk be diversified away by investing in both Lululemon Athletica and Zane Interactive at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Lululemon Athletica and Zane Interactive into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lululemon Athletica and Zane Interactive Publishing, you can compare the effects of market volatilities on Lululemon Athletica and Zane Interactive 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 Zane Interactive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lululemon Athletica and Zane Interactive.
Diversification Opportunities for Lululemon Athletica and Zane Interactive
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lululemon and Zane is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Lululemon Athletica and Zane Interactive Publishing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zane Interactive Pub 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 Zane Interactive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zane Interactive Pub has no effect on the direction of Lululemon Athletica i.e., Lululemon Athletica and Zane Interactive go up and down completely randomly.
Pair Corralation between Lululemon Athletica and Zane Interactive
If you would invest 32,672 in Lululemon Athletica on September 24, 2024 and sell it today you would earn a total of 5,677 from holding Lululemon Athletica or generate 17.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lululemon Athletica vs. Zane Interactive Publishing
Performance |
| Timeline |
| Lululemon Athletica |
| Zane Interactive Pub |
Lululemon Athletica and Zane Interactive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lululemon Athletica and Zane Interactive
The main advantage of trading using opposite Lululemon Athletica and Zane Interactive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lululemon Athletica position performs unexpectedly, Zane Interactive 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 Zane Interactive will offset losses from the drop in Zane Interactive's long position.| Lululemon Athletica vs. Amer Sports, | Lululemon Athletica vs. Brunswick | Lululemon Athletica vs. BRP Inc | Lululemon Athletica vs. Vision Marine Technologies |
| Zane Interactive vs. SunLink Health Systems | Zane Interactive vs. Coupang LLC | Zane Interactive vs. Sea | Zane Interactive 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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