Correlation Between 3M and GBLATL
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By analyzing existing cross correlation between 3M Company and GBLATL 1625 15 JAN 26, you can compare the effects of market volatilities on 3M and GBLATL 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 GBLATL. Check out your portfolio center. Please also check ongoing floating volatility patterns of 3M and GBLATL.
Diversification Opportunities for 3M and GBLATL
Modest diversification
The 3 months correlation between 3M and GBLATL is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding 3M Company and GBLATL 1625 15 JAN 26 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GBLATL 1625 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 GBLATL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GBLATL 1625 15 has no effect on the direction of 3M i.e., 3M and GBLATL go up and down completely randomly.
Pair Corralation between 3M and GBLATL
Considering the 90-day investment horizon 3M Company is expected to generate 2.17 times more return on investment than GBLATL. However, 3M is 2.17 times more volatile than GBLATL 1625 15 JAN 26. It trades about 0.07 of its potential returns per unit of risk. GBLATL 1625 15 JAN 26 is currently generating about -0.01 per unit of risk. If you would invest 8,074 in 3M Company on August 24, 2024 and sell it today you would earn a total of 4,768 from holding 3M Company or generate 59.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 33.73% |
| Values | Daily Returns |
3M Company vs. GBLATL 1625 15 JAN 26
Performance |
| Timeline |
| 3M Company |
| GBLATL 1625 15 |
3M and GBLATL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 3M and GBLATL
The main advantage of trading using opposite 3M and GBLATL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 3M position performs unexpectedly, GBLATL 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 GBLATL will offset losses from the drop in GBLATL's long position.| 3M vs. MDU Resources Group | 3M vs. Valmont Industries | 3M vs. Griffon | 3M vs. Compass Diversified 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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