Correlation Between Summit Materials and MIE HOLDINGS
Can any of the company-specific risk be diversified away by investing in both Summit Materials and MIE HOLDINGS 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 MIE HOLDINGS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Summit Materials and MIE HOLDINGS, you can compare the effects of market volatilities on Summit Materials and MIE HOLDINGS 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 MIE HOLDINGS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Summit Materials and MIE HOLDINGS.
Diversification Opportunities for Summit Materials and MIE HOLDINGS
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Summit and MIE is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Summit Materials and MIE HOLDINGS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MIE HOLDINGS 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 MIE HOLDINGS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MIE HOLDINGS has no effect on the direction of Summit Materials i.e., Summit Materials and MIE HOLDINGS go up and down completely randomly.
Pair Corralation between Summit Materials and MIE HOLDINGS
If you would invest 4,860 in Summit Materials on October 24, 2024 and sell it today you would earn a total of 140.00 from holding Summit Materials or generate 2.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Summit Materials vs. MIE HOLDINGS
Performance |
| Timeline |
| Summit Materials |
| MIE HOLDINGS |
Summit Materials and MIE HOLDINGS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Summit Materials and MIE HOLDINGS
The main advantage of trading using opposite Summit Materials and MIE HOLDINGS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Summit Materials position performs unexpectedly, MIE HOLDINGS 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 MIE HOLDINGS will offset losses from the drop in MIE HOLDINGS's long position.| Summit Materials vs. AGF Management Limited | Summit Materials vs. Gaming and Leisure | Summit Materials vs. CeoTronics AG | Summit Materials vs. MOVIE GAMES SA |
| MIE HOLDINGS vs. Summit Materials | MIE HOLDINGS vs. Goodyear Tire Rubber | MIE HOLDINGS vs. ASPEN TECHINC DL | MIE HOLDINGS vs. Mitsubishi Materials |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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