Correlation Between ENTERPRISE and Lululemon Athletica
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By analyzing existing cross correlation between ENTERPRISE PRODS OPER and Lululemon Athletica, you can compare the effects of market volatilities on ENTERPRISE and Lululemon Athletica 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 ENTERPRISE with a short position of Lululemon Athletica. Check out your portfolio center. Please also check ongoing floating volatility patterns of ENTERPRISE and Lululemon Athletica.
Diversification Opportunities for ENTERPRISE and Lululemon Athletica
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ENTERPRISE and Lululemon is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding ENTERPRISE PRODS OPER and Lululemon Athletica in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lululemon Athletica and ENTERPRISE 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 ENTERPRISE PRODS OPER are associated (or correlated) with Lululemon Athletica. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lululemon Athletica has no effect on the direction of ENTERPRISE i.e., ENTERPRISE and Lululemon Athletica go up and down completely randomly.
Pair Corralation between ENTERPRISE and Lululemon Athletica
Assuming the 90 days trading horizon ENTERPRISE PRODS OPER is expected to generate 48.19 times more return on investment than Lululemon Athletica. However, ENTERPRISE is 48.19 times more volatile than Lululemon Athletica. It trades about 0.1 of its potential returns per unit of risk. Lululemon Athletica is currently generating about 0.03 per unit of risk. If you would invest 9,740 in ENTERPRISE PRODS OPER on September 13, 2024 and sell it today you would earn a total of 491.00 from holding ENTERPRISE PRODS OPER or generate 5.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 33.94% |
| Values | Daily Returns |
ENTERPRISE PRODS OPER vs. Lululemon Athletica
Performance |
| Timeline |
| ENTERPRISE PRODS OPER |
| Lululemon Athletica |
ENTERPRISE and Lululemon Athletica Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ENTERPRISE and Lululemon Athletica
The main advantage of trading using opposite ENTERPRISE and Lululemon Athletica positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ENTERPRISE position performs unexpectedly, Lululemon Athletica 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 Lululemon Athletica will offset losses from the drop in Lululemon Athletica's long position.| ENTERPRISE vs. Lululemon Athletica | ENTERPRISE vs. NH Foods Ltd | ENTERPRISE vs. Ross Stores | ENTERPRISE vs. Zumiez Inc |
| Lululemon Athletica vs. Digital Brands Group | Lululemon Athletica vs. Data Storage | Lululemon Athletica vs. Auddia Inc | Lululemon Athletica vs. DatChat Series A |
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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