Correlation Between Summit Materials and International Game
Can any of the company-specific risk be diversified away by investing in both Summit Materials and International Game 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 Summit Materials and International Game into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Summit Materials and International Game Technology, you can compare the effects of market volatilities on Summit Materials and International Game 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 Summit Materials with a short position of International Game. Check out your portfolio center. Please also check ongoing floating volatility patterns of Summit Materials and International Game.
Diversification Opportunities for Summit Materials and International Game
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Summit and International is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Summit Materials and International Game Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Game and Summit Materials 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 Summit Materials are associated (or correlated) with International Game. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Game has no effect on the direction of Summit Materials i.e., Summit Materials and International Game go up and down completely randomly.
Pair Corralation between Summit Materials and International Game
Assuming the 90 days trading horizon Summit Materials is expected to generate 0.88 times more return on investment than International Game. However, Summit Materials is 1.13 times less risky than International Game. It trades about 0.14 of its potential returns per unit of risk. International Game Technology is currently generating about -0.1 per unit of risk. If you would invest 4,380 in Summit Materials on October 31, 2024 and sell it today you would earn a total of 620.00 from holding Summit Materials or generate 14.16% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Summit Materials vs. International Game Technology
Performance |
Timeline |
Summit Materials |
International Game |
Summit Materials and International Game Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Summit Materials and International Game
The main advantage of trading using opposite Summit Materials and International Game positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Summit Materials position performs unexpectedly, International Game 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 International Game will offset losses from the drop in International Game's long position.Summit Materials vs. GEAR4MUSIC LS 10 | ||
Summit Materials vs. UNIVMUSIC GRPADR050 | ||
Summit Materials vs. MOVIE GAMES SA | ||
Summit Materials vs. DEVRY EDUCATION GRP |
International Game vs. LAir Liquide SA | ||
International Game vs. Waste Management | ||
International Game vs. Pentair plc | ||
International Game vs. AGF Management Limited |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
Stocks Directory Find actively traded stocks across global markets | |
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |