Correlation Between Summit Materials and EXPEDIA
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By analyzing existing cross correlation between Summit Materials and EXPEDIA GROUP INC, you can compare the effects of market volatilities on Summit Materials and EXPEDIA 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 EXPEDIA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Summit Materials and EXPEDIA.
Diversification Opportunities for Summit Materials and EXPEDIA
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Summit and EXPEDIA is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Summit Materials and EXPEDIA GROUP INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EXPEDIA GROUP INC 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 EXPEDIA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EXPEDIA GROUP INC has no effect on the direction of Summit Materials i.e., Summit Materials and EXPEDIA go up and down completely randomly.
Pair Corralation between Summit Materials and EXPEDIA
Considering the 90-day investment horizon Summit Materials is expected to generate 4.24 times more return on investment than EXPEDIA. However, Summit Materials is 4.24 times more volatile than EXPEDIA GROUP INC. It trades about 0.14 of its potential returns per unit of risk. EXPEDIA GROUP INC is currently generating about -0.15 per unit of risk. If you would invest 4,783 in Summit Materials on September 2, 2024 and sell it today you would earn a total of 311.00 from holding Summit Materials or generate 6.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Summit Materials vs. EXPEDIA GROUP INC
Performance |
| Timeline |
| Summit Materials |
| EXPEDIA GROUP INC |
Summit Materials and EXPEDIA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Summit Materials and EXPEDIA
The main advantage of trading using opposite Summit Materials and EXPEDIA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Summit Materials position performs unexpectedly, EXPEDIA 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 EXPEDIA will offset losses from the drop in EXPEDIA's long position.| Summit Materials vs. Martin Marietta Materials | Summit Materials vs. Vulcan Materials | Summit Materials vs. James Hardie Industries | Summit Materials vs. Eagle Materials |
| EXPEDIA vs. AEP TEX INC | EXPEDIA vs. US BANK NATIONAL | EXPEDIA vs. Bank of America | EXPEDIA vs. GE Aerospace |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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