Correlation Between Summit Materials and Joint Corp
Can any of the company-specific risk be diversified away by investing in both Summit Materials and Joint Corp 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 Joint Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Summit Materials and The Joint Corp, you can compare the effects of market volatilities on Summit Materials and Joint Corp 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 Joint Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Summit Materials and Joint Corp.
Diversification Opportunities for Summit Materials and Joint Corp
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Summit and Joint is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Summit Materials and The Joint Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Joint Corp 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 Joint Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Joint Corp has no effect on the direction of Summit Materials i.e., Summit Materials and Joint Corp go up and down completely randomly.
Pair Corralation between Summit Materials and Joint Corp
Considering the 90-day investment horizon Summit Materials is expected to generate 0.68 times more return on investment than Joint Corp. However, Summit Materials is 1.47 times less risky than Joint Corp. It trades about 0.13 of its potential returns per unit of risk. The Joint Corp is currently generating about -0.13 per unit of risk. If you would invest 4,899 in Summit Materials on September 13, 2024 and sell it today you would earn a total of 183.00 from holding Summit Materials or generate 3.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Summit Materials vs. The Joint Corp
Performance |
| Timeline |
| Summit Materials |
| Joint Corp |
Summit Materials and Joint Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Summit Materials and Joint Corp
The main advantage of trading using opposite Summit Materials and Joint Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Summit Materials position performs unexpectedly, Joint Corp 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 Joint Corp will offset losses from the drop in Joint Corp'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 |
| Joint Corp vs. ASGN Inc | Joint Corp vs. Kforce Inc | Joint Corp vs. Kelly Services A | Joint Corp vs. AMN Healthcare Services |
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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |