Correlation Between Match and Summit Materials
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By analyzing existing cross correlation between Match Group 4125 and Summit Materials, you can compare the effects of market volatilities on Match 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 Match with a short position of Summit Materials. Check out your portfolio center. Please also check ongoing floating volatility patterns of Match and Summit Materials.
Diversification Opportunities for Match and Summit Materials
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Match and Summit is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Match Group 4125 and Summit Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Summit Materials and Match 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 Match Group 4125 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 Match i.e., Match and Summit Materials go up and down completely randomly.
Pair Corralation between Match and Summit Materials
Assuming the 90 days trading horizon Match Group 4125 is expected to under-perform the Summit Materials. But the bond apears to be less risky and, when comparing its historical volatility, Match Group 4125 is 3.76 times less risky than Summit Materials. The bond trades about -0.12 of its potential returns per unit of risk. The Summit Materials is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 3,777 in Summit Materials on September 3, 2024 and sell it today you would earn a total of 1,317 from holding Summit Materials or generate 34.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 90.63% |
| Values | Daily Returns |
Match Group 4125 vs. Summit Materials
Performance |
| Timeline |
| Match Group 4125 |
| Summit Materials |
Match and Summit Materials Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Match and Summit Materials
The main advantage of trading using opposite Match and Summit Materials positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Match 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.| Match vs. Yuexiu Transport Infrastructure | Match vs. PGE Corp | Match vs. Suburban Propane Partners | Match vs. Cheniere Energy Partners |
| 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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