Correlation Between Park National and LOWES
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By analyzing existing cross correlation between Park National and LOWES INC 31, you can compare the effects of market volatilities on Park National 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 Park National with a short position of LOWES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Park National and LOWES.
Diversification Opportunities for Park National and LOWES
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Park and LOWES is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Park National and LOWES INC 31 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LOWES INC 31 and Park National 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 Park National 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 31 has no effect on the direction of Park National i.e., Park National and LOWES go up and down completely randomly.
Pair Corralation between Park National and LOWES
Considering the 90-day investment horizon Park National is expected to under-perform the LOWES. In addition to that, Park National is 10.33 times more volatile than LOWES INC 31. It trades about -0.18 of its total potential returns per unit of risk. LOWES INC 31 is currently generating about 0.06 per unit of volatility. If you would invest 9,650 in LOWES INC 31 on October 25, 2024 and sell it today you would earn a total of 17.00 from holding LOWES INC 31 or generate 0.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.0% |
| Values | Daily Returns |
Park National vs. LOWES INC 31
Performance |
| Timeline |
| Park National |
| LOWES INC 31 |
Park National and LOWES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Park National and LOWES
The main advantage of trading using opposite Park National and LOWES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Park National 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.| Park National vs. Peoples Bancorp | Park National vs. Lakeland Financial | Park National vs. NBT Bancorp | Park National vs. Trustmark |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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