Correlation Between LOWES and GE Aerospace
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By analyzing existing cross correlation between LOWES PANIES INC and GE Aerospace, you can compare the effects of market volatilities on LOWES and GE Aerospace 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 GE Aerospace. Check out your portfolio center. Please also check ongoing floating volatility patterns of LOWES and GE Aerospace.
Diversification Opportunities for LOWES and GE Aerospace
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between LOWES and GE Aerospace is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding LOWES PANIES INC and GE Aerospace in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GE Aerospace 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 PANIES INC are associated (or correlated) with GE Aerospace. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GE Aerospace has no effect on the direction of LOWES i.e., LOWES and GE Aerospace go up and down completely randomly.
Pair Corralation between LOWES and GE Aerospace
Assuming the 90 days trading horizon LOWES PANIES INC is expected to generate 1.33 times more return on investment than GE Aerospace. However, LOWES is 1.33 times more volatile than GE Aerospace. It trades about -0.03 of its potential returns per unit of risk. GE Aerospace is currently generating about -0.21 per unit of risk. If you would invest 8,727 in LOWES PANIES INC on September 13, 2024 and sell it today you would lose (188.00) from holding LOWES PANIES INC or give up 2.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
LOWES PANIES INC vs. GE Aerospace
Performance |
| Timeline |
| LOWES PANIES INC |
| GE Aerospace |
LOWES and GE Aerospace Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LOWES and GE Aerospace
The main advantage of trading using opposite LOWES and GE Aerospace positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LOWES position performs unexpectedly, GE Aerospace 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 GE Aerospace will offset losses from the drop in GE Aerospace's long position.| LOWES vs. National CineMedia | LOWES vs. Hf Foods Group | LOWES vs. Senmiao Technology | LOWES vs. NH Foods Ltd |
| GE Aerospace vs. Illinois Tool Works | GE Aerospace vs. Dover | GE Aerospace vs. Cummins | GE Aerospace vs. Eaton PLC |
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 Stocks Directory module to find actively traded stocks across global markets.
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