Correlation Between LOWES and Old Republic
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By analyzing existing cross correlation between LOWES INC 405 and Old Republic International, you can compare the effects of market volatilities on LOWES and Old Republic 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 Old Republic. Check out your portfolio center. Please also check ongoing floating volatility patterns of LOWES and Old Republic.
Diversification Opportunities for LOWES and Old Republic
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between LOWES and Old is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding LOWES INC 405 and Old Republic International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Old Republic Interna 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 Old Republic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Old Republic Interna has no effect on the direction of LOWES i.e., LOWES and Old Republic go up and down completely randomly.
Pair Corralation between LOWES and Old Republic
Assuming the 90 days trading horizon LOWES is expected to generate 4.33 times less return on investment than Old Republic. In addition to that, LOWES is 1.13 times more volatile than Old Republic International. It trades about 0.02 of its total potential returns per unit of risk. Old Republic International is currently generating about 0.1 per unit of volatility. If you would invest 2,721 in Old Republic International on September 14, 2024 and sell it today you would earn a total of 958.00 from holding Old Republic International or generate 35.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 93.68% |
| Values | Daily Returns |
LOWES INC 405 vs. Old Republic International
Performance |
| Timeline |
| LOWES INC 405 |
| Old Republic Interna |
LOWES and Old Republic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LOWES and Old Republic
The main advantage of trading using opposite LOWES and Old Republic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LOWES position performs unexpectedly, Old Republic 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 Old Republic will offset losses from the drop in Old Republic's long position.| LOWES vs. Old Republic International | LOWES vs. Siriuspoint | LOWES vs. Copa Holdings SA | LOWES vs. Palomar Holdings |
| Old Republic vs. Axa Equitable Holdings | Old Republic vs. American International Group | Old Republic vs. Arch Capital Group | Old Republic vs. Sun Life Financial |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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