Correlation Between LOWES and Aldel Financial
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By analyzing existing cross correlation between LOWES INC 3375 and Aldel Financial II, you can compare the effects of market volatilities on LOWES and Aldel Financial 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 Aldel Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of LOWES and Aldel Financial.
Diversification Opportunities for LOWES and Aldel Financial
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between LOWES and Aldel is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding LOWES INC 3375 and Aldel Financial II in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aldel Financial II 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 3375 are associated (or correlated) with Aldel Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aldel Financial II has no effect on the direction of LOWES i.e., LOWES and Aldel Financial go up and down completely randomly.
Pair Corralation between LOWES and Aldel Financial
Assuming the 90 days trading horizon LOWES INC 3375 is expected to under-perform the Aldel Financial. In addition to that, LOWES is 2.58 times more volatile than Aldel Financial II. It trades about -0.09 of its total potential returns per unit of risk. Aldel Financial II is currently generating about 0.27 per unit of volatility. If you would invest 990.00 in Aldel Financial II on November 2, 2024 and sell it today you would earn a total of 9.00 from holding Aldel Financial II or generate 0.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 58.18% |
| Values | Daily Returns |
LOWES INC 3375 vs. Aldel Financial II
Performance |
| Timeline |
| LOWES INC 3375 |
| Aldel Financial II |
LOWES and Aldel Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LOWES and Aldel Financial
The main advantage of trading using opposite LOWES and Aldel Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LOWES position performs unexpectedly, Aldel Financial 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 Aldel Financial will offset losses from the drop in Aldel Financial's long position.| LOWES vs. AG Mortgage Investment | LOWES vs. Catalyst Pharmaceuticals | LOWES vs. Apogee Therapeutics, Common | LOWES vs. Regeneron Pharmaceuticals |
| Aldel Financial vs. WEC Energy Group | Aldel Financial vs. Getty Copper | Aldel Financial vs. East Africa Metals | Aldel Financial vs. Kinetik 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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