Correlation Between 3M and MUTHIN
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By analyzing existing cross correlation between 3M Company and MUTHIN 7125 percent, you can compare the effects of market volatilities on 3M and MUTHIN 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 MUTHIN. Check out your portfolio center. Please also check ongoing floating volatility patterns of 3M and MUTHIN.
Diversification Opportunities for 3M and MUTHIN
Very good diversification
The 3 months correlation between 3M and MUTHIN is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding 3M Company and MUTHIN 7125 percent in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MUTHIN 7125 percent 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 MUTHIN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MUTHIN 7125 percent has no effect on the direction of 3M i.e., 3M and MUTHIN go up and down completely randomly.
Pair Corralation between 3M and MUTHIN
Considering the 90-day investment horizon 3M Company is expected to generate 9.4 times more return on investment than MUTHIN. However, 3M is 9.4 times more volatile than MUTHIN 7125 percent. It trades about 0.13 of its potential returns per unit of risk. MUTHIN 7125 percent is currently generating about -0.77 per unit of risk. If you would invest 12,779 in 3M Company on September 1, 2024 and sell it today you would earn a total of 574.00 from holding 3M Company or generate 4.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 33.33% |
| Values | Daily Returns |
3M Company vs. MUTHIN 7125 percent
Performance |
| Timeline |
| 3M Company |
| MUTHIN 7125 percent |
3M and MUTHIN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 3M and MUTHIN
The main advantage of trading using opposite 3M and MUTHIN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 3M position performs unexpectedly, MUTHIN 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 MUTHIN will offset losses from the drop in MUTHIN'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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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