Correlation Between Summit Materials and Energy
Specify exactly 2 symbols:
By analyzing existing cross correlation between Summit Materials and Energy Transfer 7125, you can compare the effects of market volatilities on Summit Materials and Energy 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 Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Summit Materials and Energy.
Diversification Opportunities for Summit Materials and Energy
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Summit and Energy is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Summit Materials and Energy Transfer 7125 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Energy Transfer 7125 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 Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Energy Transfer 7125 has no effect on the direction of Summit Materials i.e., Summit Materials and Energy go up and down completely randomly.
Pair Corralation between Summit Materials and Energy
Considering the 90-day investment horizon Summit Materials is expected to generate 0.96 times more return on investment than Energy. However, Summit Materials is 1.04 times less risky than Energy. It trades about 0.07 of its potential returns per unit of risk. Energy Transfer 7125 is currently generating about 0.03 per unit of risk. If you would invest 2,902 in Summit Materials on September 14, 2024 and sell it today you would earn a total of 2,180 from holding Summit Materials or generate 75.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 96.15% |
| Values | Daily Returns |
Summit Materials vs. Energy Transfer 7125
Performance |
| Timeline |
| Summit Materials |
| Energy Transfer 7125 |
Summit Materials and Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Summit Materials and Energy
The main advantage of trading using opposite Summit Materials and Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Summit Materials position performs unexpectedly, Energy 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 Energy will offset losses from the drop in Energy'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 |
| Energy vs. Uber Technologies | Energy vs. Catalyst Pharmaceuticals | Energy vs. Datadog | Energy vs. Acumen Pharmaceuticals |
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
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |