Correlation Between 3M and 17136MAC6
Specify exactly 2 symbols:
By analyzing existing cross correlation between 3M Company and CHD 56 15 NOV 32, you can compare the effects of market volatilities on 3M and 17136MAC6 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 17136MAC6. Check out your portfolio center. Please also check ongoing floating volatility patterns of 3M and 17136MAC6.
Diversification Opportunities for 3M and 17136MAC6
Modest diversification
The 3 months correlation between 3M and 17136MAC6 is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding 3M Company and CHD 56 15 NOV 32 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHD 56 15 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 17136MAC6. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHD 56 15 has no effect on the direction of 3M i.e., 3M and 17136MAC6 go up and down completely randomly.
Pair Corralation between 3M and 17136MAC6
Considering the 90-day investment horizon 3M Company is expected to generate 4.58 times more return on investment than 17136MAC6. However, 3M is 4.58 times more volatile than CHD 56 15 NOV 32. It trades about 0.1 of its potential returns per unit of risk. CHD 56 15 NOV 32 is currently generating about 0.05 per unit of risk. If you would invest 9,763 in 3M Company on August 25, 2024 and sell it today you would earn a total of 3,079 from holding 3M Company or generate 31.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 94.44% |
| Values | Daily Returns |
3M Company vs. CHD 56 15 NOV 32
Performance |
| Timeline |
| 3M Company |
| CHD 56 15 |
3M and 17136MAC6 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 3M and 17136MAC6
The main advantage of trading using opposite 3M and 17136MAC6 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 3M position performs unexpectedly, 17136MAC6 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 17136MAC6 will offset losses from the drop in 17136MAC6's long position.| 3M vs. MDU Resources Group | 3M vs. Valmont Industries | 3M vs. Griffon | 3M vs. Compass Diversified Holdings |
| 17136MAC6 vs. AEP TEX INC | 17136MAC6 vs. US BANK NATIONAL | 17136MAC6 vs. 3M Company | 17136MAC6 vs. Alcoa Corp |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |