Correlation Between CONSUMERS and Summit Materials
Specify exactly 2 symbols:
By analyzing existing cross correlation between CONSUMERS ENERGY 395 and Summit Materials, you can compare the effects of market volatilities on CONSUMERS and Summit Materials 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 CONSUMERS with a short position of Summit Materials. Check out your portfolio center. Please also check ongoing floating volatility patterns of CONSUMERS and Summit Materials.
Diversification Opportunities for CONSUMERS and Summit Materials
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between CONSUMERS and Summit is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding CONSUMERS ENERGY 395 and Summit Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Summit Materials and CONSUMERS 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 CONSUMERS ENERGY 395 are associated (or correlated) with Summit Materials. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Summit Materials has no effect on the direction of CONSUMERS i.e., CONSUMERS and Summit Materials go up and down completely randomly.
Pair Corralation between CONSUMERS and Summit Materials
Assuming the 90 days trading horizon CONSUMERS ENERGY 395 is expected to under-perform the Summit Materials. But the bond apears to be less risky and, when comparing its historical volatility, CONSUMERS ENERGY 395 is 2.6 times less risky than Summit Materials. The bond trades about -0.26 of its potential returns per unit of risk. The Summit Materials is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 3,903 in Summit Materials on August 30, 2024 and sell it today you would earn a total of 1,206 from holding Summit Materials or generate 30.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 38.64% |
| Values | Daily Returns |
CONSUMERS ENERGY 395 vs. Summit Materials
Performance |
| Timeline |
| CONSUMERS ENERGY 5 |
| Summit Materials |
CONSUMERS and Summit Materials Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CONSUMERS and Summit Materials
The main advantage of trading using opposite CONSUMERS and Summit Materials positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CONSUMERS position performs unexpectedly, Summit Materials 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 Summit Materials will offset losses from the drop in Summit Materials' long position.| CONSUMERS vs. KNOT Offshore Partners | CONSUMERS vs. RLX Technology | CONSUMERS vs. Anheuser Busch Inbev | CONSUMERS vs. Altria Group |
| Summit Materials vs. Martin Marietta Materials | Summit Materials vs. Vulcan Materials | Summit Materials vs. United States Lime | Summit Materials vs. James Hardie Industries |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |