Correlation Between 3M and 00206RJH6
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By analyzing existing cross correlation between 3M Company and AT T 49, you can compare the effects of market volatilities on 3M and 00206RJH6 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 3M with a short position of 00206RJH6. Check out your portfolio center. Please also check ongoing floating volatility patterns of 3M and 00206RJH6.
Diversification Opportunities for 3M and 00206RJH6
Excellent diversification
The 3 months correlation between 3M and 00206RJH6 is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding 3M Company and AT T 49 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 00206RJH6 and 3M 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 3M Company are associated (or correlated) with 00206RJH6. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 00206RJH6 has no effect on the direction of 3M i.e., 3M and 00206RJH6 go up and down completely randomly.
Pair Corralation between 3M and 00206RJH6
Considering the 90-day investment horizon 3M Company is expected to generate 0.86 times more return on investment than 00206RJH6. However, 3M Company is 1.16 times less risky than 00206RJH6. It trades about 0.1 of its potential returns per unit of risk. AT T 49 is currently generating about 0.04 per unit of risk. If you would invest 8,218 in 3M Company on August 31, 2024 and sell it today you would earn a total of 5,135 from holding 3M Company or generate 62.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 32.4% |
| Values | Daily Returns |
3M Company vs. AT T 49
Performance |
| Timeline |
| 3M Company |
| 00206RJH6 |
3M and 00206RJH6 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 3M and 00206RJH6
The main advantage of trading using opposite 3M and 00206RJH6 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 3M position performs unexpectedly, 00206RJH6 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 00206RJH6 will offset losses from the drop in 00206RJH6's long position.| 3M vs. MDU Resources Group | 3M vs. Valmont Industries | 3M vs. Griffon | 3M vs. Compass Diversified Holdings |
| 00206RJH6 vs. ATT Inc | 00206RJH6 vs. Home Depot | 00206RJH6 vs. Cisco Systems | 00206RJH6 vs. Dupont De Nemours |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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