Correlation Between Summit Environmental and Scotts
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By analyzing existing cross correlation between Summit Environmental and Scotts Miracle Gro 525, you can compare the effects of market volatilities on Summit Environmental and Scotts 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 Scotts. Check out your portfolio center. Please also check ongoing floating volatility patterns of Summit Environmental and Scotts.
Diversification Opportunities for Summit Environmental and Scotts
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Summit and Scotts is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Summit Environmental and Scotts Miracle Gro 525 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Scotts Miracle Gro 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 Scotts. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Scotts Miracle Gro has no effect on the direction of Summit Environmental i.e., Summit Environmental and Scotts go up and down completely randomly.
Pair Corralation between Summit Environmental and Scotts
If you would invest 9,712 in Scotts Miracle Gro 525 on September 12, 2024 and sell it today you would earn a total of 211.00 from holding Scotts Miracle Gro 525 or generate 2.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 92.71% |
| Values | Daily Returns |
Summit Environmental vs. Scotts Miracle Gro 525
Performance |
| Timeline |
| Summit Environmental |
| Scotts Miracle Gro |
Summit Environmental and Scotts Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Summit Environmental and Scotts
The main advantage of trading using opposite Summit Environmental and Scotts positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Summit Environmental position performs unexpectedly, Scotts 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 Scotts will offset losses from the drop in Scotts' long position.| Summit Environmental vs. Lipocine | Summit Environmental vs. ServiceNow | Summit Environmental vs. Apogee Enterprises | Summit Environmental vs. Amkor Technology |
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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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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