Correlation Between SUMITOMO and Old Republic
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By analyzing existing cross correlation between SUMITOMO MITSUI FINL and Old Republic International, you can compare the effects of market volatilities on SUMITOMO and Old Republic 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 SUMITOMO with a short position of Old Republic. Check out your portfolio center. Please also check ongoing floating volatility patterns of SUMITOMO and Old Republic.
Diversification Opportunities for SUMITOMO and Old Republic
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SUMITOMO and Old is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding SUMITOMO MITSUI FINL and Old Republic International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Old Republic Interna and SUMITOMO 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 SUMITOMO MITSUI FINL are associated (or correlated) with Old Republic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Old Republic Interna has no effect on the direction of SUMITOMO i.e., SUMITOMO and Old Republic go up and down completely randomly.
Pair Corralation between SUMITOMO and Old Republic
Assuming the 90 days trading horizon SUMITOMO MITSUI FINL is expected to under-perform the Old Republic. But the bond apears to be less risky and, when comparing its historical volatility, SUMITOMO MITSUI FINL is 1.16 times less risky than Old Republic. The bond trades about -0.06 of its potential returns per unit of risk. The Old Republic International is currently generating about 0.4 of returns per unit of risk over similar time horizon. If you would invest 3,529 in Old Republic International on August 31, 2024 and sell it today you would earn a total of 369.00 from holding Old Republic International or generate 10.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SUMITOMO MITSUI FINL vs. Old Republic International
Performance |
| Timeline |
| SUMITOMO MITSUI FINL |
| Old Republic Interna |
SUMITOMO and Old Republic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SUMITOMO and Old Republic
The main advantage of trading using opposite SUMITOMO and Old Republic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SUMITOMO position performs unexpectedly, Old Republic 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 Old Republic will offset losses from the drop in Old Republic's long position.| SUMITOMO vs. Old Republic International | SUMITOMO vs. Sun Life Financial | SUMITOMO vs. Cheniere Energy Partners | SUMITOMO vs. Transportadora de Gas |
| Old Republic vs. American International Group | Old Republic vs. Hartford Financial Services | Old Republic vs. Goosehead Insurance | Old Republic vs. Enstar Group Limited |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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