Correlation Between LOWES and Coupang LLC
Specify exactly 2 symbols:
By analyzing existing cross correlation between LOWES INC 425 and Coupang LLC, you can compare the effects of market volatilities on LOWES and Coupang LLC 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 LOWES with a short position of Coupang LLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of LOWES and Coupang LLC.
Diversification Opportunities for LOWES and Coupang LLC
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between LOWES and Coupang is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding LOWES INC 425 and Coupang LLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coupang LLC and LOWES 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 LOWES INC 425 are associated (or correlated) with Coupang LLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coupang LLC has no effect on the direction of LOWES i.e., LOWES and Coupang LLC go up and down completely randomly.
Pair Corralation between LOWES and Coupang LLC
Assuming the 90 days trading horizon LOWES is expected to generate 2.85 times less return on investment than Coupang LLC. But when comparing it to its historical volatility, LOWES INC 425 is 1.29 times less risky than Coupang LLC. It trades about 0.03 of its potential returns per unit of risk. Coupang LLC is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 2,179 in Coupang LLC on September 3, 2024 and sell it today you would earn a total of 306.00 from holding Coupang LLC or generate 14.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 52.8% |
| Values | Daily Returns |
LOWES INC 425 vs. Coupang LLC
Performance |
| Timeline |
| LOWES INC 425 |
| Coupang LLC |
LOWES and Coupang LLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LOWES and Coupang LLC
The main advantage of trading using opposite LOWES and Coupang LLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LOWES position performs unexpectedly, Coupang LLC 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 Coupang LLC will offset losses from the drop in Coupang LLC's long position.The idea behind LOWES INC 425 and Coupang LLC pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Coupang LLC vs. MercadoLibre | Coupang LLC vs. PDD Holdings | Coupang LLC vs. JD Inc Adr | Coupang LLC vs. Alibaba Group Holding |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |