Correlation Between LOWES and Relx PLC
Specify exactly 2 symbols:
By analyzing existing cross correlation between LOWES PANIES INC and Relx PLC ADR, you can compare the effects of market volatilities on LOWES and Relx PLC 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 Relx PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of LOWES and Relx PLC.
Diversification Opportunities for LOWES and Relx PLC
Significant diversification
The 3 months correlation between LOWES and Relx is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding LOWES PANIES INC and Relx PLC ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Relx PLC ADR 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 Relx PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Relx PLC ADR has no effect on the direction of LOWES i.e., LOWES and Relx PLC go up and down completely randomly.
Pair Corralation between LOWES and Relx PLC
Assuming the 90 days trading horizon LOWES PANIES INC is expected to under-perform the Relx PLC. In addition to that, LOWES is 1.85 times more volatile than Relx PLC ADR. It trades about -0.03 of its total potential returns per unit of risk. Relx PLC ADR is currently generating about -0.03 per unit of volatility. If you would invest 4,780 in Relx PLC ADR on September 12, 2024 and sell it today you would lose (46.00) from holding Relx PLC ADR or give up 0.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
LOWES PANIES INC vs. Relx PLC ADR
Performance |
| Timeline |
| LOWES PANIES INC |
| Relx PLC ADR |
LOWES and Relx PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LOWES and Relx PLC
The main advantage of trading using opposite LOWES and Relx PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LOWES position performs unexpectedly, Relx PLC 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 Relx PLC will offset losses from the drop in Relx PLC's long position.| LOWES vs. Relx PLC ADR | LOWES vs. Bright Scholar Education | LOWES vs. Xponential Fitness | LOWES vs. Daily Journal Corp |
| Relx PLC vs. Maximus | Relx PLC vs. CBIZ Inc | Relx PLC vs. First Advantage Corp | Relx PLC vs. Network 1 Technologies |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |