Correlation Between Summit Materials and Triumph
Can any of the company-specific risk be diversified away by investing in both Summit Materials and Triumph 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 Triumph into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Summit Materials and Triumph Group, you can compare the effects of market volatilities on Summit Materials and Triumph 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 Triumph. Check out your portfolio center. Please also check ongoing floating volatility patterns of Summit Materials and Triumph.
Diversification Opportunities for Summit Materials and Triumph
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Summit and Triumph is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Summit Materials and Triumph Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Triumph Group 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 Triumph. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Triumph Group has no effect on the direction of Summit Materials i.e., Summit Materials and Triumph go up and down completely randomly.
Pair Corralation between Summit Materials and Triumph
If you would invest 5,035 in Summit Materials on October 20, 2024 and sell it today you would earn a total of 184.00 from holding Summit Materials or generate 3.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 5.0% |
| Values | Daily Returns |
Summit Materials vs. Triumph Group
Performance |
| Timeline |
| Summit Materials |
| Triumph Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Summit Materials and Triumph Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Summit Materials and Triumph
The main advantage of trading using opposite Summit Materials and Triumph positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Summit Materials position performs unexpectedly, Triumph 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 Triumph will offset losses from the drop in Triumph'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 |
| Triumph vs. RLX Technology | Triumph vs. Vita Coco | Triumph vs. Corsair Gaming | Triumph vs. Compania Cervecerias Unidas |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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