Correlation Between DISH Network and Lowes Companies
Can any of the company-specific risk be diversified away by investing in both DISH Network and Lowes Companies at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining DISH Network and Lowes Companies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DISH Network and Lowes Companies, you can compare the effects of market volatilities on DISH Network and Lowes Companies 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 DISH Network with a short position of Lowes Companies. Check out your portfolio center. Please also check ongoing floating volatility patterns of DISH Network and Lowes Companies.
Diversification Opportunities for DISH Network and Lowes Companies
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between DISH and Lowes is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding DISH Network and Lowes Companies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lowes Companies and DISH Network 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 DISH Network are associated (or correlated) with Lowes Companies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lowes Companies has no effect on the direction of DISH Network i.e., DISH Network and Lowes Companies go up and down completely randomly.
Pair Corralation between DISH Network and Lowes Companies
If you would invest 21,876 in Lowes Companies on January 21, 2024 and sell it today you would earn a total of 1,148 from holding Lowes Companies or generate 5.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 1.56% |
| Values | Daily Returns |
DISH Network vs. Lowes Companies
Performance |
| Timeline |
| DISH Network |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Lowes Companies |
DISH Network and Lowes Companies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DISH Network and Lowes Companies
The main advantage of trading using opposite DISH Network and Lowes Companies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DISH Network position performs unexpectedly, Lowes Companies 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 Companies will offset losses from the drop in Lowes Companies' long position.| DISH Network vs. Verizon Communications | DISH Network vs. ATT Inc | DISH Network vs. Comcast Corp | DISH Network vs. Charter Communications |
| Lowes Companies vs. Floor Decor Holdings | Lowes Companies vs. LL Flooring Holdings | Lowes Companies vs. Arhaus Inc | Lowes Companies vs. Haverty Furniture Companies |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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