Correlation Between Walmart and LOWES
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By analyzing existing cross correlation between Walmart and LOWES PANIES INC, you can compare the effects of market volatilities on Walmart and LOWES 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 Walmart with a short position of LOWES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Walmart and LOWES.
Diversification Opportunities for Walmart and LOWES
Excellent diversification
The 3 months correlation between Walmart and LOWES is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Walmart and LOWES PANIES INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LOWES PANIES INC and Walmart 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 Walmart are associated (or correlated) with LOWES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LOWES PANIES INC has no effect on the direction of Walmart i.e., Walmart and LOWES go up and down completely randomly.
Pair Corralation between Walmart and LOWES
Considering the 90-day investment horizon Walmart is expected to generate 3.19 times more return on investment than LOWES. However, Walmart is 3.19 times more volatile than LOWES PANIES INC. It trades about 0.52 of its potential returns per unit of risk. LOWES PANIES INC is currently generating about -0.23 per unit of risk. If you would invest 8,245 in Walmart on September 4, 2024 and sell it today you would earn a total of 1,019 from holding Walmart or generate 12.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 90.48% |
| Values | Daily Returns |
Walmart vs. LOWES PANIES INC
Performance |
| Timeline |
| Walmart |
| LOWES PANIES INC |
Walmart and LOWES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Walmart and LOWES
The main advantage of trading using opposite Walmart and LOWES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Walmart position performs unexpectedly, LOWES 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 LOWES will offset losses from the drop in LOWES's long position.| Walmart vs. Aquagold International | Walmart vs. Thrivent High Yield | Walmart vs. Morningstar Unconstrained Allocation | Walmart vs. Via Renewables |
| LOWES vs. Enersys | LOWES vs. Jacobs Solutions | LOWES vs. Tesla Inc | LOWES vs. Inflection Point Acquisition |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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