Correlation Between Summit Materials and SVELEV
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By analyzing existing cross correlation between Summit Materials and SVELEV 13 10 FEB 28, you can compare the effects of market volatilities on Summit Materials and SVELEV 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 SVELEV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Summit Materials and SVELEV.
Diversification Opportunities for Summit Materials and SVELEV
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Summit and SVELEV is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Summit Materials and SVELEV 13 10 FEB 28 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SVELEV 13 10 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 SVELEV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SVELEV 13 10 has no effect on the direction of Summit Materials i.e., Summit Materials and SVELEV go up and down completely randomly.
Pair Corralation between Summit Materials and SVELEV
Considering the 90-day investment horizon Summit Materials is expected to generate 0.29 times more return on investment than SVELEV. However, Summit Materials is 3.5 times less risky than SVELEV. It trades about 0.2 of its potential returns per unit of risk. SVELEV 13 10 FEB 28 is currently generating about -0.11 per unit of risk. If you would invest 5,080 in Summit Materials on December 4, 2024 and sell it today you would earn a total of 169.00 from holding Summit Materials or generate 3.33% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 93.88% |
Values | Daily Returns |
Summit Materials vs. SVELEV 13 10 FEB 28
Performance |
Timeline |
Summit Materials |
Risk-Adjusted Performance
Good
Weak | Strong |
SVELEV 13 10 |
Summit Materials and SVELEV Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Summit Materials and SVELEV
The main advantage of trading using opposite Summit Materials and SVELEV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Summit Materials position performs unexpectedly, SVELEV 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 SVELEV will offset losses from the drop in SVELEV's long position.Summit Materials vs. Martin Marietta Materials | Summit Materials vs. Vulcan Materials | Summit Materials vs. United States Lime | Summit Materials vs. James Hardie Industries |
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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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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