Correlation Between LOWES and Origin Materials
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By analyzing existing cross correlation between LOWES INC 405 and Origin Materials, you can compare the effects of market volatilities on LOWES and Origin Materials 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 Origin Materials. Check out your portfolio center. Please also check ongoing floating volatility patterns of LOWES and Origin Materials.
Diversification Opportunities for LOWES and Origin Materials
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between LOWES and Origin is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding LOWES INC 405 and Origin Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Origin Materials 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 Origin Materials. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Origin Materials has no effect on the direction of LOWES i.e., LOWES and Origin Materials go up and down completely randomly.
Pair Corralation between LOWES and Origin Materials
Assuming the 90 days trading horizon LOWES INC 405 is expected to generate 0.64 times more return on investment than Origin Materials. However, LOWES INC 405 is 1.56 times less risky than Origin Materials. It trades about 0.03 of its potential returns per unit of risk. Origin Materials is currently generating about 0.0 per unit of risk. If you would invest 7,880 in LOWES INC 405 on September 14, 2024 and sell it today you would earn a total of 60.00 from holding LOWES INC 405 or generate 0.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
LOWES INC 405 vs. Origin Materials
Performance |
| Timeline |
| LOWES INC 405 |
| Origin Materials |
LOWES and Origin Materials Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LOWES and Origin Materials
The main advantage of trading using opposite LOWES and Origin Materials positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LOWES position performs unexpectedly, Origin Materials 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 Origin Materials will offset losses from the drop in Origin Materials' long position.| LOWES vs. Old Republic International | LOWES vs. Siriuspoint | LOWES vs. Copa Holdings SA | LOWES vs. Palomar Holdings |
| Origin Materials vs. Tronox Holdings PLC | Origin Materials vs. Valhi Inc | Origin Materials vs. Lsb Industries | Origin Materials vs. Huntsman |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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