Correlation Between NH Foods and LOWES
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By analyzing existing cross correlation between NH Foods Ltd and LOWES PANIES INC, you can compare the effects of market volatilities on NH Foods 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 NH Foods with a short position of LOWES. Check out your portfolio center. Please also check ongoing floating volatility patterns of NH Foods and LOWES.
Diversification Opportunities for NH Foods and LOWES
Pay attention - limited upside
The 3 months correlation between NIPMY and LOWES is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding NH Foods Ltd 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 NH Foods 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 NH Foods Ltd 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 NH Foods i.e., NH Foods and LOWES go up and down completely randomly.
Pair Corralation between NH Foods and LOWES
Assuming the 90 days horizon NH Foods Ltd is expected to generate 0.8 times more return on investment than LOWES. However, NH Foods Ltd is 1.25 times less risky than LOWES. It trades about 0.09 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 1,330 in NH Foods Ltd on September 13, 2024 and sell it today you would earn a total of 370.00 from holding NH Foods Ltd or generate 27.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
NH Foods Ltd vs. LOWES PANIES INC
Performance |
| Timeline |
| NH Foods |
| LOWES PANIES INC |
NH Foods and LOWES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NH Foods and LOWES
The main advantage of trading using opposite NH Foods and LOWES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NH Foods 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.The idea behind NH Foods Ltd and LOWES PANIES INC pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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