Correlation Between International Investors and Summit Global
Can any of the company-specific risk be diversified away by investing in both International Investors and Summit Global 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 International Investors and Summit Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between International Investors Gold and Summit Global Investments, you can compare the effects of market volatilities on International Investors and Summit Global 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 International Investors with a short position of Summit Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Investors and Summit Global.
Diversification Opportunities for International Investors and Summit Global
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between International and Summit is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding International Investors Gold and Summit Global Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Summit Global Investments and International Investors 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 International Investors Gold are associated (or correlated) with Summit Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Summit Global Investments has no effect on the direction of International Investors i.e., International Investors and Summit Global go up and down completely randomly.
Pair Corralation between International Investors and Summit Global
Assuming the 90 days horizon International Investors Gold is expected to generate 2.56 times more return on investment than Summit Global. However, International Investors is 2.56 times more volatile than Summit Global Investments. It trades about 0.38 of its potential returns per unit of risk. Summit Global Investments is currently generating about 0.43 per unit of risk. If you would invest 828.00 in International Investors Gold on October 30, 2024 and sell it today you would earn a total of 86.00 from holding International Investors Gold or generate 10.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
International Investors Gold vs. Summit Global Investments
Performance |
| Timeline |
| International Investors |
| Summit Global Investments |
International Investors and Summit Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Investors and Summit Global
The main advantage of trading using opposite International Investors and Summit Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Investors position performs unexpectedly, Summit Global 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 Global will offset losses from the drop in Summit Global's long position.| International Investors vs. Goldman Sachs Clean | International Investors vs. Gabelli Gold Fund | International Investors vs. Precious Metals And | International Investors vs. James Balanced Golden |
| Summit Global vs. Texton Property | Summit Global vs. Vanguard Reit Index | Summit Global vs. Nexpoint Real Estate | Summit Global vs. Nexpoint Real Estate |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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