Correlation Between Lowes Companies and Singapore Land

Can any of the company-specific risk be diversified away by investing in both Lowes Companies and Singapore Land 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 Singapore Land into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Lowes Companies and Singapore Land Group, you can compare the effects of market volatilities on Lowes Companies and Singapore Land 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 Singapore Land. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lowes Companies and Singapore Land.

Diversification Opportunities for Lowes Companies and Singapore Land

0.0

Correlation Coefficient

Lowes Companies  Singapore Land

Pay attention - limited upside

The 3 months correlation between Lowes and Singapore is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Lowes Companies and Singapore Land Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Singapore Land Group 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 Singapore Land. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Singapore Land Group has no effect on the direction of Lowes Companies i.e., Lowes Companies and Singapore Land go up and down completely randomly.

Pair Corralation between Lowes Companies and Singapore Land

If you would invest (100.00) in Singapore Land Group on February 14, 2024 and sell it today you would earn a total of  100.00  from holding Singapore Land Group or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Lowes Companies  vs.  Singapore Land Group

Lowes Companies

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Lowes Companies are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable basic indicators, Lowes Companies is not utilizing all of its potentials. The recent stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Singapore Land Group

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Singapore Land Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable fundamental indicators, Singapore Land is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Lowes Companies and Singapore Land

The main advantage of trading using opposite Lowes Companies and Singapore Land positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lowes Companies position performs unexpectedly, Singapore Land 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 Singapore Land will offset losses from the drop in Singapore Land's long position.

The idea behind Lowes Companies and Singapore Land Group pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.