Correlation Between Lowes Companies and DISH Network
Can any of the company-specific risk be diversified away by investing in both Lowes Companies and DISH Network 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 Lowes Companies and DISH Network into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lowes Companies and DISH Network, you can compare the effects of market volatilities on Lowes Companies and DISH Network 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 Companies with a short position of DISH Network. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lowes Companies and DISH Network.
Diversification Opportunities for Lowes Companies and DISH Network
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Lowes and DISH is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Lowes Companies and DISH Network in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DISH Network and Lowes Companies 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 Companies are associated (or correlated) with DISH Network. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DISH Network has no effect on the direction of Lowes Companies i.e., Lowes Companies and DISH Network go up and down completely randomly.
Pair Corralation between Lowes Companies and DISH Network
If you would invest 23,539 in Lowes Companies on December 29, 2023 and sell it today you would earn a total of 1,794 from holding Lowes Companies or generate 7.62% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 4.55% |
Values | Daily Returns |
Lowes Companies vs. DISH Network
Performance |
Timeline |
Lowes Companies |
DISH Network |
Risk-Adjusted Performance
0 of 100
Low | High |
Very Weak
Lowes Companies and DISH Network Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Lowes Companies and DISH Network
The main advantage of trading using opposite Lowes Companies and DISH Network positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lowes Companies position performs unexpectedly, DISH Network 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 DISH Network will offset losses from the drop in DISH Network's long position.Lowes Companies vs. Macys Inc | Lowes Companies vs. Wayfair | Lowes Companies vs. 1StdibsCom | Lowes Companies vs. AutoNation |
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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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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