Correlation Between ATT and LOWES
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By analyzing existing cross correlation between ATT Inc and LOWES INC 6875, you can compare the effects of market volatilities on ATT 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 ATT with a short position of LOWES. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATT and LOWES.
Diversification Opportunities for ATT and LOWES
Excellent diversification
The 3 months correlation between ATT and LOWES is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding ATT Inc 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 ATT 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 ATT Inc 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 ATT i.e., ATT and LOWES go up and down completely randomly.
Pair Corralation between ATT and LOWES
Taking into account the 90-day investment horizon ATT Inc is expected to generate 3.03 times more return on investment than LOWES. However, ATT is 3.03 times more volatile than LOWES INC 6875. It trades about 0.18 of its potential returns per unit of risk. LOWES INC 6875 is currently generating about -0.02 per unit of risk. If you would invest 1,780 in ATT Inc on September 3, 2024 and sell it today you would earn a total of 536.00 from holding ATT Inc or generate 30.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 92.0% |
| Values | Daily Returns |
ATT Inc vs. LOWES INC 6875
Performance |
| Timeline |
| ATT Inc |
| LOWES INC 6875 |
ATT and LOWES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATT and LOWES
The main advantage of trading using opposite ATT and LOWES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATT 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.| ATT vs. Highway Holdings Limited | ATT vs. QCR Holdings | ATT vs. Partner Communications | ATT vs. Acumen Pharmaceuticals |
| LOWES vs. QBE Insurance Group | LOWES vs. Shoe Carnival | LOWES vs. NI Holdings | 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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