Correlation Between 3M and GWOCN
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By analyzing existing cross correlation between 3M Company and GWOCN 415 03 JUN 47, you can compare the effects of market volatilities on 3M and GWOCN 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 GWOCN. Check out your portfolio center. Please also check ongoing floating volatility patterns of 3M and GWOCN.
Diversification Opportunities for 3M and GWOCN
Very good diversification
The 3 months correlation between 3M and GWOCN is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding 3M Company and GWOCN 415 03 JUN 47 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GWOCN 415 03 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 GWOCN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GWOCN 415 03 has no effect on the direction of 3M i.e., 3M and GWOCN go up and down completely randomly.
Pair Corralation between 3M and GWOCN
Considering the 90-day investment horizon 3M Company is expected to generate 1.42 times more return on investment than GWOCN. However, 3M is 1.42 times more volatile than GWOCN 415 03 JUN 47. It trades about 0.1 of its potential returns per unit of risk. GWOCN 415 03 JUN 47 is currently generating about -0.02 per unit of risk. If you would invest 8,353 in 3M Company on September 3, 2024 and sell it today you would earn a total of 4,936 from holding 3M Company or generate 59.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 23.48% |
| Values | Daily Returns |
3M Company vs. GWOCN 415 03 JUN 47
Performance |
| Timeline |
| 3M Company |
| GWOCN 415 03 |
3M and GWOCN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 3M and GWOCN
The main advantage of trading using opposite 3M and GWOCN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 3M position performs unexpectedly, GWOCN 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 GWOCN will offset losses from the drop in GWOCN's long position.| 3M vs. MDU Resources Group | 3M vs. Valmont Industries | 3M vs. Griffon | 3M vs. Compass Diversified Holdings |
| GWOCN vs. Guangdong Investment Limited | GWOCN vs. Aegon NV ADR | GWOCN vs. Hafnia Limited | GWOCN vs. Comstock Holding Companies |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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