Correlation Between Summit Materials and Hyster Yale
Can any of the company-specific risk be diversified away by investing in both Summit Materials and Hyster Yale 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 Hyster Yale into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Summit Materials and Hyster Yale Materials Handling, you can compare the effects of market volatilities on Summit Materials and Hyster Yale 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 Hyster Yale. Check out your portfolio center. Please also check ongoing floating volatility patterns of Summit Materials and Hyster Yale.
Diversification Opportunities for Summit Materials and Hyster Yale
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Summit and Hyster is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Summit Materials and Hyster Yale Materials Handling in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hyster Yale Materials 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 Hyster Yale. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hyster Yale Materials has no effect on the direction of Summit Materials i.e., Summit Materials and Hyster Yale go up and down completely randomly.
Pair Corralation between Summit Materials and Hyster Yale
Assuming the 90 days trading horizon Summit Materials is expected to generate 0.7 times more return on investment than Hyster Yale. However, Summit Materials is 1.43 times less risky than Hyster Yale. It trades about 0.26 of its potential returns per unit of risk. Hyster Yale Materials Handling is currently generating about -0.11 per unit of risk. If you would invest 4,120 in Summit Materials on August 30, 2024 and sell it today you would earn a total of 700.00 from holding Summit Materials or generate 16.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Summit Materials vs. Hyster Yale Materials Handling
Performance |
| Timeline |
| Summit Materials |
| Hyster Yale Materials |
Summit Materials and Hyster Yale Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Summit Materials and Hyster Yale
The main advantage of trading using opposite Summit Materials and Hyster Yale positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Summit Materials position performs unexpectedly, Hyster Yale 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 Hyster Yale will offset losses from the drop in Hyster Yale's long position.| Summit Materials vs. Apple Inc | Summit Materials vs. Apple Inc | Summit Materials vs. Apple Inc | Summit Materials vs. Apple Inc |
| Hyster Yale vs. United Airlines Holdings | Hyster Yale vs. CARSALESCOM | Hyster Yale vs. STMicroelectronics NV | Hyster Yale vs. UET United Electronic |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |