Correlation Between PACIFIC and 3M
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By analyzing existing cross correlation between PACIFIC GAS AND and 3M Company, you can compare the effects of market volatilities on PACIFIC and 3M 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 PACIFIC with a short position of 3M. Check out your portfolio center. Please also check ongoing floating volatility patterns of PACIFIC and 3M.
Diversification Opportunities for PACIFIC and 3M
Pay attention - limited upside
The 3 months correlation between PACIFIC and 3M is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding PACIFIC GAS AND and 3M Company in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 3M Company and PACIFIC 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 PACIFIC GAS AND are associated (or correlated) with 3M. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 3M Company has no effect on the direction of PACIFIC i.e., PACIFIC and 3M go up and down completely randomly.
Pair Corralation between PACIFIC and 3M
Assuming the 90 days trading horizon PACIFIC GAS AND is expected to under-perform the 3M. But the bond apears to be less risky and, when comparing its historical volatility, PACIFIC GAS AND is 2.69 times less risky than 3M. The bond trades about -0.29 of its potential returns per unit of risk. The 3M Company is currently generating about 0.56 of returns per unit of risk over similar time horizon. If you would invest 12,987 in 3M Company on November 4, 2024 and sell it today you would earn a total of 2,233 from holding 3M Company or generate 17.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
PACIFIC GAS AND vs. 3M Company
Performance |
| Timeline |
| PACIFIC GAS AND |
| 3M Company |
PACIFIC and 3M Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PACIFIC and 3M
The main advantage of trading using opposite PACIFIC and 3M positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PACIFIC position performs unexpectedly, 3M 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 3M will offset losses from the drop in 3M's long position.| PACIFIC vs. Mesa Air Group | PACIFIC vs. Summit Bank Group | PACIFIC vs. Catalyst Bancorp | PACIFIC vs. Juniata Valley Financial |
| 3M vs. MDU Resources Group | 3M vs. Valmont Industries | 3M vs. Griffon | 3M vs. Compass Diversified 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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