Correlation Between ATT and LOWES
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By analyzing existing cross correlation between ATT Inc and LOWES INC 25, 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
Pay attention - limited upside
The 3 months correlation between ATT and LOWES is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding ATT Inc and LOWES INC 25 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LOWES INC 25 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 25 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 1.47 times more return on investment than LOWES. However, ATT is 1.47 times more volatile than LOWES INC 25. It trades about 0.18 of its potential returns per unit of risk. LOWES INC 25 is currently generating about -0.17 per unit of risk. If you would invest 2,231 in ATT Inc on September 12, 2024 and sell it today you would earn a total of 120.00 from holding ATT Inc or generate 5.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
ATT Inc vs. LOWES INC 25
Performance |
| Timeline |
| ATT Inc |
| LOWES INC 25 |
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. Victory Integrity Smallmid Cap | ATT vs. Hilton Worldwide Holdings | ATT vs. NVIDIA | ATT vs. JPMorgan Chase Co |
| LOWES vs. Tyson Foods | LOWES vs. Sphere Entertainment Co | LOWES vs. BCE Inc | LOWES vs. Cementos Pacasmayo SAA |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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