Simpson Manufacturing Correlations

SSD Stock

USD 160.45 0.71 0.44%

The current 90-days correlation between Simpson Manufacturing and West Fraser Timber is 0.43 (i.e., Very weak diversification). The correlation of Simpson Manufacturing 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.

Simpson Manufacturing Correlation With Market

Poor diversification

The correlation between Simpson Manufacturing and DJI is 0.6 (i.e., Poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Simpson Manufacturing and DJI in the same portfolio, assuming nothing else is changed.

Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Simpson Manufacturing. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in state.

For information on how to trade Simpson Stock refer to our How to Trade Simpson Stock guide.

Moving together with Simpson Stock

0.72	UFPI	Ufp Industries	Pair Corr
0.67	WS	Worthington Steel	Pair Corr
0.7	ECVT	Ecovyst	Pair Corr

Moving against Simpson Stock

0.53	AG	First Majestic Silver	Pair Corr
0.39	MT	ArcelorMittal SA ADR	Pair Corr
0.35	MP	MP Materials Corp	Pair Corr
0.33	X	United States Steel	Pair Corr
0.33	AU	AngloGold Ashanti plc	Pair Corr
0.43	AGI	Alamos Gold	Pair Corr
0.36	AEM	Agnico Eagle Mines Sell-off Trend	Pair Corr
0.35	TX	Ternium SA ADR	Pair Corr
0.33	VOXR	Vox Royalty Corp	Pair Corr

Related Correlations Analysis

	WFG	EVA	IFSPF	UFPI	CFPZF	SVCBF	WFSTF	STLJF
WFG		0.0	0.73	0.79	0.15	-0.79	-0.51	0.53	WFG
EVA	0.0		0.0	0.0	0.0	0.0	0.0	0.0	EVA
IFSPF	0.73	0.0		0.68	0.31	-0.59	-0.05	0.51	IFSPF
UFPI	0.79	0.0	0.68		0.27	-0.47	-0.37	0.38	UFPI
CFPZF	0.15	0.0	0.31	0.27		0.05	0.34	0.2	CFPZF
SVCBF	-0.79	0.0	-0.59	-0.47	0.05		0.39	-0.47	SVCBF
WFSTF	-0.51	0.0	-0.05	-0.37	0.34	0.39		-0.21	WFSTF
STLJF	0.53	0.0	0.51	0.38	0.2	-0.47	-0.21		STLJF
	WFG	EVA	IFSPF	UFPI	CFPZF	SVCBF	WFSTF	STLJF

Click cells to compare fundamentals

Check Volatility

Backtest Portfolio

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

UFPI	+ 0.79	WFG
IFSPF	+ 0.73	WFG
UFPI	+ 0.68	IFSPF
STLJF	+ 0.53	WFG
STLJF	+ 0.51	IFSPF
WFSTF	+ 0.39	SVCBF

High negative correlations

SVCBF	- 0.79	WFG
SVCBF	- 0.59	IFSPF
WFSTF	- 0.51	WFG
STLJF	- 0.47	SVCBF
SVCBF	- 0.47	UFPI
WFSTF	- 0.37	UFPI

Risk-Adjusted Indicators

There is a big difference between Simpson Stock performing well and Simpson Manufacturing 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 Simpson Manufacturing'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
WFG	1.20	(0.15)	0.00	(0.29)	0.00	0.00	2.32	(3.40)	6.73
EVA	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
IFSPF	2.22	(0.09)	0.00	(0.10)	0.00	0.00	4.90	(4.17)	17.18
UFPI	1.23	(0.12)	0.00	(0.16)	0.00	0.00	2.60	(2.41)	6.38
CFPZF	1.47	(0.04)	0.00	(0.12)	0.00	0.00	2.63	(3.63)	9.59
SVCBF	0.57	0.00	0.00	0.00	0.00	0.00	1.95	(2.05)	7.82
WFSTF	2.34	0.20	0.04	0.11	2.47	(5.32)	6.90	(6.25)	21.43
STLJF	1.33	(0.13)	0.00	9.51	0.00	0.00	4.85	(3.77)	13.47

Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions

Feedback Blog

Made with optimal in San Francisco

2024 Macroaxis LLC