Sumitomo Electric Correlations

SMTOY Stock

USD 19.34 0.09 0.46%

The current 90-days correlation between Sumitomo Electric and Allison Transmission Holdings is 0.29 (i.e., Modest diversification). The correlation of Sumitomo Electric 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. If the correlation is 0, the equities are not correlated; they are entirely random.

Sumitomo Electric Correlation With Market

Weak diversification

The correlation between Sumitomo Electric Industries and DJI is 0.38 (i.e., Weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Sumitomo Electric Industries and DJI in the same portfolio, assuming nothing else is changed.

The ability to find closely correlated positions to Sumitomo Electric could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Sumitomo Electric when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Sumitomo Electric - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Sumitomo Electric Industries to buy it.

Moving together with Sumitomo Pink Sheet

0.74	FYGGY	Fuyao Glass Industry	Pair Corr
0.69	ZM	Zoom Video Communications	Pair Corr
0.79	RCAT	Red Cat Holdings Trending	Pair Corr
0.65	CRWD	Crowdstrike Holdings Earnings Call Today	Pair Corr
0.62	ALAB	Astera Labs, Common	Pair Corr
0.63	GM	General Motors Aggressive Push	Pair Corr

Moving against Sumitomo Pink Sheet

0.56	BRDCY	Bridgestone Corp ADR	Pair Corr
0.5	PTAIY	Astra International Tbk	Pair Corr
0.41	MGDDY	Compagnie Generale des	Pair Corr
0.38	BRDCF	Bridgestone	Pair Corr
0.56	QLGN	Qualigen Therapeutics Trending	Pair Corr
0.4	SGD	Safe and Green	Pair Corr

Related Correlations Analysis

	ALSN	LAZR	LEA	BWA	ALV	FOXF	LKQ	QS	MBLY	INVZ
ALSN		-0.03	-0.8	0.37	0.26	-0.76	-0.59	-0.77	0.84	-0.4	ALSN
LAZR	-0.03		0.29	0.18	0.45	0.14	0.38	0.0	0.11	-0.1	LAZR
LEA	-0.8	0.29		0.02	0.08	0.82	0.83	0.63	-0.48	0.4	LEA
BWA	0.37	0.18	0.02		-0.11	0.2	-0.13	-0.17	0.32	0.46	BWA
ALV	0.26	0.45	0.08	-0.11		-0.33	0.35	-0.21	0.55	-0.48	ALV
FOXF	-0.76	0.14	0.82	0.2	-0.33		0.57	0.7	-0.64	0.71	FOXF
LKQ	-0.59	0.38	0.83	-0.13	0.35	0.57		0.53	-0.19	0.12	LKQ
QS	-0.77	0.0	0.63	-0.17	-0.21	0.7	0.53		-0.6	0.51	QS
MBLY	0.84	0.11	-0.48	0.32	0.55	-0.64	-0.19	-0.6		-0.48	MBLY
INVZ	-0.4	-0.1	0.4	0.46	-0.48	0.71	0.12	0.51	-0.48		INVZ
	ALSN	LAZR	LEA	BWA	ALV	FOXF	LKQ	QS	MBLY	INVZ

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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

MBLY	+ 0.84	ALSN
LKQ	+ 0.83	LEA
FOXF	+ 0.82	LEA
INVZ	+ 0.71	FOXF
QS	+ 0.7	FOXF
QS	+ 0.63	LEA

High negative correlations

LEA	- 0.8	ALSN
QS	- 0.77	ALSN
FOXF	- 0.76	ALSN
MBLY	- 0.64	FOXF
MBLY	- 0.6	QS
LKQ	- 0.59	ALSN

Risk-Adjusted Indicators

There is a big difference between Sumitomo Pink Sheet performing well and Sumitomo Electric 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 Electric'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
ALSN	1.20	0.25	0.26	0.29	0.79	(1.46)	2.73	(1.39)	9.25
LAZR	5.16	(0.88)	0.00	(0.13)	0.00	0.00	12.23	(11.57)	33.67
LEA	1.42	(0.35)	0.00	(0.16)	0.00	0.00	3.00	(3.17)	9.76
BWA	1.30	(0.08)	(0.03)	0.05	1.57	(1.41)	2.84	(2.56)	7.85
ALV	1.51	(0.10)	(0.06)	0.01	1.79	(1.57)	2.80	(3.14)	8.85
FOXF	1.93	(0.53)	0.00	(0.15)	0.00	0.00	3.31	(4.37)	15.31
LKQ	1.04	(0.20)	0.00	(0.10)	0.00	0.00	2.60	(2.48)	7.01
QS	2.56	(0.24)	0.00	(0.14)	0.00	0.00	3.88	(4.99)	33.56
MBLY	3.90	0.18	0.08	0.18	4.21	(4.52)	10.51	(7.27)	25.50
INVZ	4.10	(0.21)	0.01	0.05	3.82	(6.31)	12.24	(6.25)	29.64

Be your own money manager

Our tools can tell you how much better you can do entering a position in Sumitomo Electric without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

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