Correlation Between Summit Materials and KBS Real
Can any of the company-specific risk be diversified away by investing in both Summit Materials and KBS Real 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 KBS Real into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Summit Materials and KBS Real Estate, you can compare the effects of market volatilities on Summit Materials and KBS Real 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 KBS Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Summit Materials and KBS Real.
Diversification Opportunities for Summit Materials and KBS Real
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Summit and KBS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Summit Materials and KBS Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KBS Real Estate 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 KBS Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KBS Real Estate has no effect on the direction of Summit Materials i.e., Summit Materials and KBS Real go up and down completely randomly.
Pair Corralation between Summit Materials and KBS Real
If you would invest 5,010 in Summit Materials on September 12, 2024 and sell it today you would earn a total of 91.50 from holding Summit Materials or generate 1.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Summit Materials vs. KBS Real Estate
Performance |
| Timeline |
| Summit Materials |
| KBS Real Estate |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Summit Materials and KBS Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Summit Materials and KBS Real
The main advantage of trading using opposite Summit Materials and KBS Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Summit Materials position performs unexpectedly, KBS Real 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 KBS Real will offset losses from the drop in KBS Real'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 |
| KBS Real vs. Olympic Steel | KBS Real vs. Meiwu Technology Co | KBS Real vs. Pentair PLC | KBS Real vs. Westinghouse Air Brake |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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