Correlation Between 3M and 29279XAA8
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By analyzing existing cross correlation between 3M Company and US29279XAA81, you can compare the effects of market volatilities on 3M and 29279XAA8 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 29279XAA8. Check out your portfolio center. Please also check ongoing floating volatility patterns of 3M and 29279XAA8.
Diversification Opportunities for 3M and 29279XAA8
Very good diversification
The 3 months correlation between 3M and 29279XAA8 is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding 3M Company and US29279XAA81 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on US29279XAA81 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 29279XAA8. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of US29279XAA81 has no effect on the direction of 3M i.e., 3M and 29279XAA8 go up and down completely randomly.
Pair Corralation between 3M and 29279XAA8
If you would invest 12,970 in 3M Company on November 3, 2024 and sell it today you would earn a total of 2,250 from holding 3M Company or generate 17.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.0% |
| Values | Daily Returns |
3M Company vs. US29279XAA81
Performance |
| Timeline |
| 3M Company |
| US29279XAA81 |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Insignificant
3M and 29279XAA8 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 3M and 29279XAA8
The main advantage of trading using opposite 3M and 29279XAA8 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 3M position performs unexpectedly, 29279XAA8 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 29279XAA8 will offset losses from the drop in 29279XAA8's long position.| 3M vs. MDU Resources Group | 3M vs. Valmont Industries | 3M vs. Griffon | 3M vs. Compass Diversified Holdings |
| 29279XAA8 vs. Alaska Air Group | 29279XAA8 vs. LAir Liquide SA | 29279XAA8 vs. AerSale Corp | 29279XAA8 vs. ASE Industrial Holding |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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