Correlation Between Ion Beam and Summit Materials
Can any of the company-specific risk be diversified away by investing in both Ion Beam and Summit Materials 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 Ion Beam and Summit Materials into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ion Beam Applications and Summit Materials Cl, you can compare the effects of market volatilities on Ion Beam and Summit Materials 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 Ion Beam with a short position of Summit Materials. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ion Beam and Summit Materials.
Diversification Opportunities for Ion Beam and Summit Materials
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ion and Summit is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Ion Beam Applications and Summit Materials Cl in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Summit Materials and Ion Beam 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 Ion Beam Applications are associated (or correlated) with Summit Materials. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Summit Materials has no effect on the direction of Ion Beam i.e., Ion Beam and Summit Materials go up and down completely randomly.
Pair Corralation between Ion Beam and Summit Materials
Assuming the 90 days trading horizon Ion Beam Applications is expected to under-perform the Summit Materials. In addition to that, Ion Beam is 2.31 times more volatile than Summit Materials Cl. It trades about -0.09 of its total potential returns per unit of risk. Summit Materials Cl is currently generating about 0.24 per unit of volatility. If you would invest 5,091 in Summit Materials Cl on October 11, 2024 and sell it today you would earn a total of 118.00 from holding Summit Materials Cl or generate 2.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ion Beam Applications vs. Summit Materials Cl
Performance |
| Timeline |
| Ion Beam Applications |
| Summit Materials |
Ion Beam and Summit Materials Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ion Beam and Summit Materials
The main advantage of trading using opposite Ion Beam and Summit Materials positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ion Beam position performs unexpectedly, Summit Materials 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 Summit Materials will offset losses from the drop in Summit Materials' long position.| Ion Beam vs. Zurich Insurance Group | Ion Beam vs. CNH Industrial NV | Ion Beam vs. Jupiter Fund Management | Ion Beam vs. Air Products Chemicals |
| Summit Materials vs. Liontrust Asset Management | Summit Materials vs. Silver Bullet Data | Summit Materials vs. Ion Beam Applications | Summit Materials vs. Compal Electronics GDR |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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