Sumitomo Mitsui Correlations

SMFG Stock

USD 14.27 0.21 1.49%

The current 90-days correlation between Sumitomo Mitsui Financial and Barclays PLC ADR is 0.32 (i.e., Weak diversification). The correlation of Sumitomo Mitsui 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.

Sumitomo Mitsui Correlation With Market

Very weak diversification

The correlation between Sumitomo Mitsui Financial and DJI is 0.46 (i.e., Very weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Sumitomo Mitsui Financial 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 Sumitomo Mitsui Financial. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in census.

Moving together with Sumitomo Stock

0.74	C	Citigroup Aggressive Push	Pair Corr
0.73	BAC	Bank of America Fiscal Year End 10th of January 2025	Pair Corr
0.61	BCS	Barclays PLC ADR	Pair Corr
0.79	JPM	JPMorgan Chase Fiscal Year End 10th of January 2025	Pair Corr
0.63	NWG	Natwest Group PLC	Pair Corr
0.7	WFC	Wells Fargo Aggressive Push	Pair Corr
0.91	MUFG	Mitsubishi UFJ Financial	Pair Corr

Moving against Sumitomo Stock

0.7	JPM-PK	JPMorgan Chase	Pair Corr
0.67	JPM-PJ	JPMorgan Chase	Pair Corr
0.66	ING	ING Group NV	Pair Corr
0.51	TD	Toronto Dominion Bank Fiscal Year End 5th of December 2024	Pair Corr
0.71	BAC-PQ	Bank of America	Pair Corr
0.7	JPM-PM	JPMorgan Chase	Pair Corr
0.69	JPM-PL	JPMorgan Chase	Pair Corr
0.62	BAC-PM	Bank of America	Pair Corr
0.62	BAC-PN	Bank of America	Pair Corr
0.39	SAN	Banco Santander SA	Pair Corr
0.7	BAC-PP	Bank of America	Pair Corr
0.68	BAC-PO	Bank of America	Pair Corr
0.67	WFC-PZ	Wells Fargo	Pair Corr
0.66	WFC-PC	Wells Fargo	Pair Corr
0.66	WFC-PA	Wells Fargo	Pair Corr
0.64	BAC-PS	Bank of America	Pair Corr

Related Correlations Analysis

	BCS	MUFG	ING	HSBC	NWG	SAN	UBS	JPM-PC	JPM-PD
BCS		0.81	-0.79	0.72	0.95	0.1	0.81	0.52	0.32	BCS
MUFG	0.81		-0.83	0.61	0.81	-0.24	0.52	0.47	0.37	MUFG
ING	-0.79	-0.83		-0.59	-0.8	0.36	-0.61	-0.46	-0.28	ING
HSBC	0.72	0.61	-0.59		0.82	0.24	0.56	0.64	0.44	HSBC
NWG	0.95	0.81	-0.8	0.82		0.12	0.74	0.56	0.35	NWG
SAN	0.1	-0.24	0.36	0.24	0.12		0.26	0.09	0.06	SAN
UBS	0.81	0.52	-0.61	0.56	0.74	0.26		0.26	0.03	UBS
JPM-PC	0.52	0.47	-0.46	0.64	0.56	0.09	0.26		0.89	JPM-PC
JPM-PD	0.32	0.37	-0.28	0.44	0.35	0.06	0.03	0.89		JPM-PD
	BCS	MUFG	ING	HSBC	NWG	SAN	UBS	JPM-PC	JPM-PD

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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

NWG	+ 0.95	BCS
JPM-PD	+ 0.89	JPM-PC
NWG	+ 0.82	HSBC
MUFG	+ 0.81	BCS
UBS	+ 0.81	BCS
NWG	+ 0.81	MUFG

High negative correlations

ING	- 0.83	MUFG
NWG	- 0.8	ING
ING	- 0.79	BCS
UBS	- 0.61	ING
HSBC	- 0.59	ING
JPM-PC	- 0.46	ING

Risk-Adjusted Indicators

There is a big difference between Sumitomo Stock performing well and Sumitomo Mitsui 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 Sumitomo Mitsui'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
BCS	1.66	(0.05)	0.01	0.09	2.11	(1.67)	3.35	(3.62)	10.17
MUFG	1.34	0.05	0.04	0.16	1.67	(1.31)	3.19	(2.73)	9.15
ING	1.08	(0.21)	0.00	(11.15)	0.00	0.00	1.68	(2.37)	7.23
HSBC	0.97	0.06	0.00	0.24	1.36	(0.94)	2.03	(2.34)	6.87
NWG	1.44	0.01	0.01	0.13	1.75	(1.58)	2.79	(3.04)	7.56
SAN	1.34	(0.04)	0.00	(0.23)	0.00	0.00	2.37	(3.70)	8.69
UBS	1.09	(0.10)	(0.04)	0.04	1.55	(1.09)	2.10	(2.24)	7.85
JPM-PC	0.23	0.02	(0.27)	0.63	0.26	(0.25)	0.56	(0.43)	1.70
JPM-PD	0.31	0.02	(0.22)	0.43	0.35	(0.34)	0.80	(0.60)	2.03

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