Correlation Between NI Holdings and LOWES
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By analyzing existing cross correlation between NI Holdings and LOWES INC 6875, you can compare the effects of market volatilities on NI Holdings 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 NI Holdings with a short position of LOWES. Check out your portfolio center. Please also check ongoing floating volatility patterns of NI Holdings and LOWES.
Diversification Opportunities for NI Holdings and LOWES
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between NODK and LOWES is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding NI Holdings and LOWES INC 6875 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LOWES INC 6875 and NI Holdings 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 NI Holdings 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 INC 6875 has no effect on the direction of NI Holdings i.e., NI Holdings and LOWES go up and down completely randomly.
Pair Corralation between NI Holdings and LOWES
Given the investment horizon of 90 days NI Holdings is expected to generate 2.57 times more return on investment than LOWES. However, NI Holdings is 2.57 times more volatile than LOWES INC 6875. It trades about 0.08 of its potential returns per unit of risk. LOWES INC 6875 is currently generating about -0.19 per unit of risk. If you would invest 1,544 in NI Holdings on September 4, 2024 and sell it today you would earn a total of 35.00 from holding NI Holdings or generate 2.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 90.48% |
| Values | Daily Returns |
NI Holdings vs. LOWES INC 6875
Performance |
| Timeline |
| NI Holdings |
| LOWES INC 6875 |
NI Holdings and LOWES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NI Holdings and LOWES
The main advantage of trading using opposite NI Holdings and LOWES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NI Holdings 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.| NI Holdings vs. Progressive Corp | NI Holdings vs. Cincinnati Financial | NI Holdings vs. W R Berkley | NI Holdings vs. The Allstate |
| LOWES vs. Alaska Air Group | LOWES vs. Ryanair Holdings PLC | LOWES vs. Porvair plc | LOWES vs. Employers Holdings |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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