Correlation Between CBL International and Summit Midstream
Can any of the company-specific risk be diversified away by investing in both CBL International and Summit Midstream 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 CBL International and Summit Midstream into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CBL International Limited and Summit Midstream Partners, you can compare the effects of market volatilities on CBL International and Summit Midstream 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 CBL International with a short position of Summit Midstream. Check out your portfolio center. Please also check ongoing floating volatility patterns of CBL International and Summit Midstream.
Diversification Opportunities for CBL International and Summit Midstream
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CBL and Summit is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CBL International Limited and Summit Midstream Partners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Summit Midstream Partners and CBL International 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 CBL International Limited are associated (or correlated) with Summit Midstream. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Summit Midstream Partners has no effect on the direction of CBL International i.e., CBL International and Summit Midstream go up and down completely randomly.
Pair Corralation between CBL International and Summit Midstream
If you would invest 0.00 in Summit Midstream Partners on August 24, 2024 and sell it today you would earn a total of 0.00 from holding Summit Midstream Partners or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CBL International Limited vs. Summit Midstream Partners
Performance |
| Timeline |
| CBL International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Summit Midstream Partners |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
CBL International and Summit Midstream Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CBL International and Summit Midstream
The main advantage of trading using opposite CBL International and Summit Midstream positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CBL International position performs unexpectedly, Summit Midstream 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 Midstream will offset losses from the drop in Summit Midstream's long position.| CBL International vs. Scorpio Tankers | CBL International vs. Frontline | CBL International vs. Teekay Tankers | CBL International vs. DHT Holdings |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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