Correlation Between Summit Materials and SSNT Old

Can any of the company-specific risk be diversified away by investing in both Summit Materials and SSNT Old 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 SSNT Old into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Summit Materials and SSNT Old, you can compare the effects of market volatilities on Summit Materials and SSNT Old 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 SSNT Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of Summit Materials and SSNT Old.

Diversification Opportunities for Summit Materials and SSNT Old

0.0

Correlation Coefficient

Summit Materials  SSNT Old

Pay attention - limited upside

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

Pair Corralation between Summit Materials and SSNT Old

If you would invest  5,054  in Summit Materials on December 29, 2024 and sell it today you would earn a total of  195.00  from holding Summit Materials or generate 3.86% return on investment over 90 days.

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

Summit Materials  vs.  SSNT Old

Summit Materials

Risk-Adjusted Performance

Solid

Over the last 90 days Summit Materials has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very unfluctuating basic indicators, Summit Materials may actually be approaching a critical reversion point that can send shares even higher in April 2025.

SSNT Old

Risk-Adjusted Performance

Very Weak

Over the last 90 days SSNT Old has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, SSNT Old is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Summit Materials and SSNT Old

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

The idea behind Summit Materials and SSNT Old 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.

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 Commodity Directory module to find actively traded commodities issued by global exchanges.