Correlation Between Summit Materials and PHILIP
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By analyzing existing cross correlation between Summit Materials and PHILIP MORRIS INTL, you can compare the effects of market volatilities on Summit Materials and PHILIP 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 PHILIP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Summit Materials and PHILIP.
Diversification Opportunities for Summit Materials and PHILIP
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Summit and PHILIP is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Summit Materials and PHILIP MORRIS INTL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PHILIP MORRIS INTL 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 PHILIP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PHILIP MORRIS INTL has no effect on the direction of Summit Materials i.e., Summit Materials and PHILIP go up and down completely randomly.
Pair Corralation between Summit Materials and PHILIP
Considering the 90-day investment horizon Summit Materials is expected to generate 6.75 times more return on investment than PHILIP. However, Summit Materials is 6.75 times more volatile than PHILIP MORRIS INTL. It trades about 0.07 of its potential returns per unit of risk. PHILIP MORRIS INTL is currently generating about -0.01 per unit of risk. If you would invest 3,840 in Summit Materials on September 12, 2024 and sell it today you would earn a total of 1,253 from holding Summit Materials or generate 32.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.18% |
| Values | Daily Returns |
Summit Materials vs. PHILIP MORRIS INTL
Performance |
| Timeline |
| Summit Materials |
| PHILIP MORRIS INTL |
Summit Materials and PHILIP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Summit Materials and PHILIP
The main advantage of trading using opposite Summit Materials and PHILIP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Summit Materials position performs unexpectedly, PHILIP 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 PHILIP will offset losses from the drop in PHILIP'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 |
| PHILIP vs. AEP TEX INC | PHILIP vs. US BANK NATIONAL | PHILIP vs. Applied Blockchain | PHILIP vs. BigBearai Holdings |
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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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