Correlation Between Summit Materials and Femasys
Can any of the company-specific risk be diversified away by investing in both Summit Materials and Femasys 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 Femasys into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Summit Materials and Femasys, you can compare the effects of market volatilities on Summit Materials and Femasys 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 Femasys. Check out your portfolio center. Please also check ongoing floating volatility patterns of Summit Materials and Femasys.
Diversification Opportunities for Summit Materials and Femasys
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Summit and Femasys is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Summit Materials and Femasys in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Femasys 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 Femasys. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Femasys has no effect on the direction of Summit Materials i.e., Summit Materials and Femasys go up and down completely randomly.
Pair Corralation between Summit Materials and Femasys
Considering the 90-day investment horizon Summit Materials is expected to generate 0.39 times more return on investment than Femasys. However, Summit Materials is 2.58 times less risky than Femasys. It trades about 0.06 of its potential returns per unit of risk. Femasys is currently generating about -0.03 per unit of risk. If you would invest 4,271 in Summit Materials on August 27, 2024 and sell it today you would earn a total of 895.00 from holding Summit Materials or generate 20.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Summit Materials vs. Femasys
Performance |
| Timeline |
| Summit Materials |
| Femasys |
Summit Materials and Femasys Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Summit Materials and Femasys
The main advantage of trading using opposite Summit Materials and Femasys positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Summit Materials position performs unexpectedly, Femasys 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 Femasys will offset losses from the drop in Femasys' 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 |
| Femasys vs. Heartbeam | Femasys vs. EUDA Health Holdings | Femasys vs. Nutex Health | Femasys vs. Healthcare Triangle |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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