Correlation Between Summit Environmental and Top Glove
Can any of the company-specific risk be diversified away by investing in both Summit Environmental and Top Glove at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Summit Environmental and Top Glove into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Summit Environmental and Top Glove, you can compare the effects of market volatilities on Summit Environmental and Top Glove 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 Summit Environmental with a short position of Top Glove. Check out your portfolio center. Please also check ongoing floating volatility patterns of Summit Environmental and Top Glove.
Diversification Opportunities for Summit Environmental and Top Glove
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Summit and Top is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Summit Environmental and Top Glove in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Top Glove and Summit Environmental 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 Summit Environmental are associated (or correlated) with Top Glove. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Top Glove has no effect on the direction of Summit Environmental i.e., Summit Environmental and Top Glove go up and down completely randomly.
Pair Corralation between Summit Environmental and Top Glove
If you would invest 18.00 in Top Glove on August 28, 2024 and sell it today you would earn a total of 7.00 from holding Top Glove or generate 38.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Summit Environmental vs. Top Glove
Performance |
| Timeline |
| Summit Environmental |
| Top Glove |
Summit Environmental and Top Glove Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Summit Environmental and Top Glove
The main advantage of trading using opposite Summit Environmental and Top Glove positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Summit Environmental position performs unexpectedly, Top Glove 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 Top Glove will offset losses from the drop in Top Glove's long position.| Summit Environmental vs. Oil Dri | Summit Environmental vs. H B Fuller | Summit Environmental vs. Northern Technologies | Summit Environmental vs. Cabot |
| Top Glove vs. Sabre Corpo | Top Glove vs. Supercom | Top Glove vs. ATRenew Inc DRC | Top Glove vs. Fast Retailing Co |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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