Correlation Between STRYKER and Lululemon Athletica
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By analyzing existing cross correlation between STRYKER P 365 and Lululemon Athletica, you can compare the effects of market volatilities on STRYKER and Lululemon Athletica 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 STRYKER with a short position of Lululemon Athletica. Check out your portfolio center. Please also check ongoing floating volatility patterns of STRYKER and Lululemon Athletica.
Diversification Opportunities for STRYKER and Lululemon Athletica
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between STRYKER and Lululemon is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding STRYKER P 365 and Lululemon Athletica in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lululemon Athletica and STRYKER 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 STRYKER P 365 are associated (or correlated) with Lululemon Athletica. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lululemon Athletica has no effect on the direction of STRYKER i.e., STRYKER and Lululemon Athletica go up and down completely randomly.
Pair Corralation between STRYKER and Lululemon Athletica
Assuming the 90 days trading horizon STRYKER P 365 is expected to under-perform the Lululemon Athletica. But the bond apears to be less risky and, when comparing its historical volatility, STRYKER P 365 is 5.17 times less risky than Lululemon Athletica. The bond trades about -0.09 of its potential returns per unit of risk. The Lululemon Athletica is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 32,672 in Lululemon Athletica on September 24, 2024 and sell it today you would earn a total of 5,270 from holding Lululemon Athletica or generate 16.13% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 95.24% |
Values | Daily Returns |
STRYKER P 365 vs. Lululemon Athletica
Performance |
Timeline |
STRYKER P 365 |
Lululemon Athletica |
STRYKER and Lululemon Athletica Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with STRYKER and Lululemon Athletica
The main advantage of trading using opposite STRYKER and Lululemon Athletica positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if STRYKER position performs unexpectedly, Lululemon Athletica 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 Lululemon Athletica will offset losses from the drop in Lululemon Athletica's long position.STRYKER vs. AEP TEX INC | STRYKER vs. US BANK NATIONAL | STRYKER vs. Brightsphere Investment Group | STRYKER vs. Neurocrine Biosciences |
Lululemon Athletica vs. Amer Sports, | Lululemon Athletica vs. Brunswick | Lululemon Athletica vs. BRP Inc | Lululemon Athletica vs. Vision Marine 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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