Correlation Between LOWES and BCB Bancorp
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By analyzing existing cross correlation between LOWES INC 405 and BCB Bancorp, you can compare the effects of market volatilities on LOWES and BCB Bancorp 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 BCB Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of LOWES and BCB Bancorp.
Diversification Opportunities for LOWES and BCB Bancorp
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between LOWES and BCB is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding LOWES INC 405 and BCB Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BCB Bancorp 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 405 are associated (or correlated) with BCB Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BCB Bancorp has no effect on the direction of LOWES i.e., LOWES and BCB Bancorp go up and down completely randomly.
Pair Corralation between LOWES and BCB Bancorp
Assuming the 90 days trading horizon LOWES INC 405 is expected to generate 2.62 times more return on investment than BCB Bancorp. However, LOWES is 2.62 times more volatile than BCB Bancorp. It trades about 0.02 of its potential returns per unit of risk. BCB Bancorp is currently generating about -0.1 per unit of risk. If you would invest 7,923 in LOWES INC 405 on September 12, 2024 and sell it today you would earn a total of 17.00 from holding LOWES INC 405 or generate 0.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.91% |
| Values | Daily Returns |
LOWES INC 405 vs. BCB Bancorp
Performance |
| Timeline |
| LOWES INC 405 |
| BCB Bancorp |
LOWES and BCB Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LOWES and BCB Bancorp
The main advantage of trading using opposite LOWES and BCB Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LOWES position performs unexpectedly, BCB Bancorp 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 BCB Bancorp will offset losses from the drop in BCB Bancorp's long position.| LOWES vs. AEP TEX INC | LOWES vs. US BANK NATIONAL | LOWES vs. Applied Blockchain | LOWES vs. BigBearai Holdings |
| BCB Bancorp vs. JPMorgan Chase Co | BCB Bancorp vs. Citigroup | BCB Bancorp vs. Wells Fargo | BCB Bancorp vs. Toronto Dominion Bank |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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