Correlation Between Ross Stores and Lufax Holding
Can any of the company-specific risk be diversified away by investing in both Ross Stores and Lufax Holding 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 Ross Stores and Lufax Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ross Stores and Lufax Holding, you can compare the effects of market volatilities on Ross Stores and Lufax Holding 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 Ross Stores with a short position of Lufax Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ross Stores and Lufax Holding.
Diversification Opportunities for Ross Stores and Lufax Holding
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ross and Lufax is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Ross Stores and Lufax Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lufax Holding and Ross Stores 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 Ross Stores are associated (or correlated) with Lufax Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lufax Holding has no effect on the direction of Ross Stores i.e., Ross Stores and Lufax Holding go up and down completely randomly.
Pair Corralation between Ross Stores and Lufax Holding
Given the investment horizon of 90 days Ross Stores is expected to generate 0.37 times more return on investment than Lufax Holding. However, Ross Stores is 2.69 times less risky than Lufax Holding. It trades about 0.19 of its potential returns per unit of risk. Lufax Holding is currently generating about -0.02 per unit of risk. If you would invest 14,890 in Ross Stores on September 10, 2025 and sell it today you would earn a total of 2,812 from holding Ross Stores or generate 18.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ross Stores vs. Lufax Holding
Performance |
| Timeline |
| Ross Stores |
| Lufax Holding |
Ross Stores and Lufax Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ross Stores and Lufax Holding
The main advantage of trading using opposite Ross Stores and Lufax Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ross Stores position performs unexpectedly, Lufax Holding 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 Lufax Holding will offset losses from the drop in Lufax Holding's long position.| Ross Stores vs. Chipotle Mexican Grill | Ross Stores vs. Yum Brands | Ross Stores vs. Starbucks | Ross Stores vs. Darden Restaurants |
| Lufax Holding vs. Navient Corp | Lufax Holding vs. Oaktree Specialty Lending | Lufax Holding vs. Jefferson Capital, Common | Lufax Holding vs. Better Home Finance |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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