Correlation Between 3M and 688239AF9
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By analyzing existing cross correlation between 3M Company and US688239AF99, you can compare the effects of market volatilities on 3M and 688239AF9 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 688239AF9. Check out your portfolio center. Please also check ongoing floating volatility patterns of 3M and 688239AF9.
Diversification Opportunities for 3M and 688239AF9
Very weak diversification
The 3 months correlation between 3M and 688239AF9 is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding 3M Company and US688239AF99 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on US688239AF99 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 688239AF9. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of US688239AF99 has no effect on the direction of 3M i.e., 3M and 688239AF9 go up and down completely randomly.
Pair Corralation between 3M and 688239AF9
Considering the 90-day investment horizon 3M Company is expected to generate 2.43 times more return on investment than 688239AF9. However, 3M is 2.43 times more volatile than US688239AF99. It trades about -0.02 of its potential returns per unit of risk. US688239AF99 is currently generating about -0.19 per unit of risk. If you would invest 13,115 in 3M Company on August 26, 2024 and sell it today you would lose (273.00) from holding 3M Company or give up 2.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 69.23% |
| Values | Daily Returns |
3M Company vs. US688239AF99
Performance |
| Timeline |
| 3M Company |
| US688239AF99 |
3M and 688239AF9 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 3M and 688239AF9
The main advantage of trading using opposite 3M and 688239AF9 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 3M position performs unexpectedly, 688239AF9 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 688239AF9 will offset losses from the drop in 688239AF9's long position.| 3M vs. Vast Renewables Limited | 3M vs. 1847 Holdings LLC | 3M vs. Westport Fuel Systems | 3M vs. Brookfield Business Partners |
| 688239AF9 vs. Bridgford Foods | 688239AF9 vs. Aegon NV ADR | 688239AF9 vs. FitLife Brands, Common | 688239AF9 vs. Fidus Investment 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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