Correlation Between Group 6 and Summerset Group
Can any of the company-specific risk be diversified away by investing in both Group 6 and Summerset Group 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 Group 6 and Summerset Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Group 6 Metals and Summerset Group Holdings, you can compare the effects of market volatilities on Group 6 and Summerset Group 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 Group 6 with a short position of Summerset Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Group 6 and Summerset Group.
Diversification Opportunities for Group 6 and Summerset Group
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Group and Summerset is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Group 6 Metals and Summerset Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Summerset Group Holdings and Group 6 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 Group 6 Metals are associated (or correlated) with Summerset Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Summerset Group Holdings has no effect on the direction of Group 6 i.e., Group 6 and Summerset Group go up and down completely randomly.
Pair Corralation between Group 6 and Summerset Group
If you would invest 1,140 in Summerset Group Holdings on September 12, 2024 and sell it today you would earn a total of 29.00 from holding Summerset Group Holdings or generate 2.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Group 6 Metals vs. Summerset Group Holdings
Performance |
| Timeline |
| Group 6 Metals |
| Summerset Group Holdings |
Group 6 and Summerset Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Group 6 and Summerset Group
The main advantage of trading using opposite Group 6 and Summerset Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Group 6 position performs unexpectedly, Summerset Group 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 Summerset Group will offset losses from the drop in Summerset Group's long position.| Group 6 vs. EVE Health Group | Group 6 vs. Srj Technologies Group | Group 6 vs. Capitol Health | Group 6 vs. RLF AgTech |
| Summerset Group vs. Kkr Credit Income | Summerset Group vs. Perpetual Credit Income | Summerset Group vs. Group 6 Metals | Summerset Group vs. Magellan Financial Group |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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