Correlation Between National CineMedia and LOWES
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By analyzing existing cross correlation between National CineMedia and LOWES PANIES INC, you can compare the effects of market volatilities on National CineMedia and LOWES 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 National CineMedia with a short position of LOWES. Check out your portfolio center. Please also check ongoing floating volatility patterns of National CineMedia and LOWES.
Diversification Opportunities for National CineMedia and LOWES
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between National and LOWES is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding National CineMedia and LOWES PANIES INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LOWES PANIES INC and National CineMedia 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 National CineMedia are associated (or correlated) with LOWES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LOWES PANIES INC has no effect on the direction of National CineMedia i.e., National CineMedia and LOWES go up and down completely randomly.
Pair Corralation between National CineMedia and LOWES
Given the investment horizon of 90 days National CineMedia is expected to generate 10.61 times more return on investment than LOWES. However, National CineMedia is 10.61 times more volatile than LOWES PANIES INC. It trades about 0.06 of its potential returns per unit of risk. LOWES PANIES INC is currently generating about 0.01 per unit of risk. If you would invest 275.00 in National CineMedia on September 13, 2024 and sell it today you would earn a total of 470.00 from holding National CineMedia or generate 170.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
National CineMedia vs. LOWES PANIES INC
Performance |
| Timeline |
| National CineMedia |
| LOWES PANIES INC |
National CineMedia and LOWES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National CineMedia and LOWES
The main advantage of trading using opposite National CineMedia and LOWES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National CineMedia position performs unexpectedly, LOWES 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 LOWES will offset losses from the drop in LOWES's long position.| National CineMedia vs. MGO Global Common | National CineMedia vs. Baosheng Media Group | National CineMedia vs. Glory Star New | National CineMedia vs. Impact Fusion International |
| LOWES vs. National CineMedia | LOWES vs. Hf Foods Group | LOWES vs. Senmiao Technology | LOWES vs. NH Foods Ltd |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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