Correlation Between Summit Materials and TRAVELERS
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By analyzing existing cross correlation between Summit Materials and TRAVELERS INS GROUP, you can compare the effects of market volatilities on Summit Materials and TRAVELERS 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 TRAVELERS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Summit Materials and TRAVELERS.
Diversification Opportunities for Summit Materials and TRAVELERS
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Summit and TRAVELERS is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Summit Materials and TRAVELERS INS GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TRAVELERS INS 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 TRAVELERS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TRAVELERS INS GROUP has no effect on the direction of Summit Materials i.e., Summit Materials and TRAVELERS go up and down completely randomly.
Pair Corralation between Summit Materials and TRAVELERS
Considering the 90-day investment horizon Summit Materials is expected to generate 0.72 times more return on investment than TRAVELERS. However, Summit Materials is 1.39 times less risky than TRAVELERS. It trades about 0.33 of its potential returns per unit of risk. TRAVELERS INS GROUP is currently generating about 0.17 per unit of risk. If you would invest 5,059 in Summit Materials on October 23, 2024 and sell it today you would earn a total of 156.00 from holding Summit Materials or generate 3.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 78.95% |
| Values | Daily Returns |
Summit Materials vs. TRAVELERS INS GROUP
Performance |
| Timeline |
| Summit Materials |
| TRAVELERS INS GROUP |
Summit Materials and TRAVELERS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Summit Materials and TRAVELERS
The main advantage of trading using opposite Summit Materials and TRAVELERS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Summit Materials position performs unexpectedly, TRAVELERS 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 TRAVELERS will offset losses from the drop in TRAVELERS'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 |
| TRAVELERS vs. Park Electrochemical | TRAVELERS vs. BJs Restaurants | TRAVELERS vs. Harmony Gold Mining | TRAVELERS vs. Mangazeya Mining |
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 CEOs Directory module to screen CEOs from public companies around the world.
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