Correlation Between Summit Materials and Concorde Gaming
Can any of the company-specific risk be diversified away by investing in both Summit Materials and Concorde Gaming 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 Materials and Concorde Gaming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Summit Materials and Concorde Gaming, you can compare the effects of market volatilities on Summit Materials and Concorde Gaming 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 Materials with a short position of Concorde Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Summit Materials and Concorde Gaming.
Diversification Opportunities for Summit Materials and Concorde Gaming
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Summit and Concorde is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Summit Materials and Concorde Gaming in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Concorde Gaming and Summit Materials 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 Materials are associated (or correlated) with Concorde Gaming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Concorde Gaming has no effect on the direction of Summit Materials i.e., Summit Materials and Concorde Gaming go up and down completely randomly.
Pair Corralation between Summit Materials and Concorde Gaming
If you would invest 0.00 in Concorde Gaming on January 12, 2025 and sell it today you would earn a total of 0.00 from holding Concorde Gaming or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Summit Materials vs. Concorde Gaming
Performance |
| Timeline |
| Summit Materials |
Risk-Adjusted Performance
Strong
Weak | Strong |
| Concorde Gaming |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Summit Materials and Concorde Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Summit Materials and Concorde Gaming
The main advantage of trading using opposite Summit Materials and Concorde Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Summit Materials position performs unexpectedly, Concorde Gaming 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 Concorde Gaming will offset losses from the drop in Concorde Gaming's long position.| Summit Materials vs. Martin Marietta Materials | Summit Materials vs. Vulcan Materials | Summit Materials vs. United States Lime | Summit Materials vs. James Hardie Industries |
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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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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