3M Correlations

The current 90-days correlation between 3M Company and Ross Stores is 0.03 (i.e., Significant diversification). The correlation of 3M is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.

3M Correlation With Market

Very weak diversification

The correlation between 3M Company and DJI is 0.4 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding 3M Company and DJI in the same portfolio, assuming nothing else is changed.

The ability to find closely correlated positions to 3M could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace 3M when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back 3M - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling 3M Company to buy it.

Moving together with 3M Stock

0.64	PETR3	Petrleo Brasileiro	Pair Corr
0.67	GOAU3	Metalurgica Gerdau	Pair Corr
0.63	GOAU4	Metalurgica Gerdau	Pair Corr
0.61	SLBG34	Schlumberger Limited	Pair Corr
0.65	KLBN3	Klabin SA	Pair Corr
0.77	USIM6	Usinas Siderrgicas	Pair Corr

Moving against 3M Stock

0.65	CYRE3	Cyrela Brazil Realty	Pair Corr
0.6	OIBR3	Oi SA	Pair Corr
0.58	HYPE3	Hypera SA	Pair Corr
0.55	INEP3	Inepar SA Indstria	Pair Corr
0.43	OIBR4	Oi SA	Pair Corr

Related Correlations Analysis

	M2RV34	ROST34	COWC34	Z1OM34	SSFO34	U2ST34	RSUL4	A1TH34
M2RV34		0.75	0.93	0.91	0.95	0.82	-0.88	-0.05	M2RV34
ROST34	0.75		0.87	0.71	0.7	0.83	-0.74	-0.16	ROST34
COWC34	0.93	0.87		0.92	0.92	0.82	-0.86	-0.14	COWC34
Z1OM34	0.91	0.71	0.92		0.96	0.71	-0.79	-0.17	Z1OM34
SSFO34	0.95	0.7	0.92	0.96		0.78	-0.85	0.01	SSFO34
U2ST34	0.82	0.83	0.82	0.71	0.78		-0.86	0.21	U2ST34
RSUL4	-0.88	-0.74	-0.86	-0.79	-0.85	-0.86		-0.12	RSUL4
A1TH34	-0.05	-0.16	-0.14	-0.17	0.01	0.21	-0.12		A1TH34
	M2RV34	ROST34	COWC34	Z1OM34	SSFO34	U2ST34	RSUL4	A1TH34

Click cells to compare fundamentals

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Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.

High positive correlations

SSFO34	+ 0.96	Z1OM34
SSFO34	+ 0.95	M2RV34
COWC34	+ 0.93	M2RV34
Z1OM34	+ 0.92	COWC34
SSFO34	+ 0.92	COWC34
Z1OM34	+ 0.91	M2RV34

High negative correlations

RSUL4	- 0.88	M2RV34
RSUL4	- 0.86	U2ST34
RSUL4	- 0.86	COWC34
RSUL4	- 0.85	SSFO34
RSUL4	- 0.79	Z1OM34
RSUL4	- 0.74	ROST34

Risk-Adjusted Indicators

There is a big difference between 3M Stock performing well and 3M Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze 3M's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

	Mean Deviation	Jensen Alpha	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
M2RV34	2.47	0.92	0.35	1.10	1.62	(2.84)	6.72	(3.34)	28.71
ROST34	0.97	0.08	0.02	0.27	1.21	(1.19)	2.51	(2.19)	9.09
COWC34	1.34	0.24	0.12	0.84	1.30	(1.53)	2.73	(1.84)	7.92
Z1OM34	1.82	0.43	0.15	1.81	1.80	(2.08)	4.92	(3.46)	11.42
SSFO34	1.58	0.64	0.31	(45.97)	1.16	(1.85)	4.91	(2.76)	13.84
U2ST34	3.18	0.69	0.19	1.57	2.97	(3.79)	8.32	(5.55)	20.88
RSUL4	1.11	(0.32)	0.00	(3.69)	0.00	0.00	1.86	(3.17)	7.57
A1TH34	1.60	0.20	0.02	(0.26)	1.96	(1.86)	3.85	(3.61)	13.89

3M Related Equities

One of the popular trading techniques among algorithmic traders is to use market-neutral strategies where every trade hedges away some risk. Because there are two separate transactions required, even if one position performs unexpectedly, the other equity can make up some of the losses. Below are some of the equities that can be combined with 3M stock to make a market-neutral strategy. Peer analysis of 3M could also be used in its relative valuation, which is a method of valuing 3M by comparing valuation metrics with similar companies.

Marvell Technology Ross Stores Costco Wholesale Zoom Video Communications salesforce inc Unity Software Metalrgica Riosulense SA Autohome American Airlines Group Alcoa Corp Apple Inc Best Buy Co Citigroup SentinelOne CVS Health Corp

Risk & Return

Correlation

3M Corporate Management

Elected by the shareholders, the 3M's board of directors comprises two types of representatives: 3M inside directors who are chosen from within the company, and outside directors, selected externally and held independent of 3M. The board's role is to monitor 3M's management team and ensure that shareholders' interests are well served. 3M's inside directors are responsible for reviewing and approving budgets prepared by upper management to implement core corporate initiatives and projects. On the other hand, 3M's outside directors are responsible for providing unbiased perspectives on the board's policies.

Michael Vale	Executive VP of Consumer Bus. Group	Profile
Monish Patolawala	Ex Officer	Profile
Bruce CFA	VP Relations	Profile
Michael Duran	VP Officer	Profile

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