Correlation Between HE Equipment and SUMITR
Specify exactly 2 symbols:
By analyzing existing cross correlation between HE Equipment Services and SUMITR 255 10 MAR 25, you can compare the effects of market volatilities on HE Equipment and SUMITR 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 HE Equipment with a short position of SUMITR. Check out your portfolio center. Please also check ongoing floating volatility patterns of HE Equipment and SUMITR.
Diversification Opportunities for HE Equipment and SUMITR
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between HEES and SUMITR is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding HE Equipment Services and SUMITR 255 10 MAR 25 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SUMITR 255 10 and HE Equipment 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 HE Equipment Services are associated (or correlated) with SUMITR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SUMITR 255 10 has no effect on the direction of HE Equipment i.e., HE Equipment and SUMITR go up and down completely randomly.
Pair Corralation between HE Equipment and SUMITR
Given the investment horizon of 90 days HE Equipment Services is expected to generate 1.88 times more return on investment than SUMITR. However, HE Equipment is 1.88 times more volatile than SUMITR 255 10 MAR 25. It trades about 0.17 of its potential returns per unit of risk. SUMITR 255 10 MAR 25 is currently generating about -0.16 per unit of risk. If you would invest 5,293 in HE Equipment Services on August 31, 2024 and sell it today you would earn a total of 640.00 from holding HE Equipment Services or generate 12.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 27.27% |
| Values | Daily Returns |
HE Equipment Services vs. SUMITR 255 10 MAR 25
Performance |
| Timeline |
| HE Equipment Services |
| SUMITR 255 10 |
HE Equipment and SUMITR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HE Equipment and SUMITR
The main advantage of trading using opposite HE Equipment and SUMITR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HE Equipment position performs unexpectedly, SUMITR 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 SUMITR will offset losses from the drop in SUMITR's long position.| HE Equipment vs. GATX Corporation | HE Equipment vs. McGrath RentCorp | HE Equipment vs. Alta Equipment Group | HE Equipment vs. Ryder System |
| SUMITR vs. HE Equipment Services | SUMITR vs. Nyxoah | SUMITR vs. Bausch Lomb Corp | SUMITR vs. Hertz Global 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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |