Correlation Between SUMITOMO and Verra Mobility
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By analyzing existing cross correlation between SUMITOMO MITSUI FINL and Verra Mobility Corp, you can compare the effects of market volatilities on SUMITOMO and Verra Mobility 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 Verra Mobility. Check out your portfolio center. Please also check ongoing floating volatility patterns of SUMITOMO and Verra Mobility.
Diversification Opportunities for SUMITOMO and Verra Mobility
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SUMITOMO and Verra is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding SUMITOMO MITSUI FINL and Verra Mobility Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Verra Mobility Corp 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 Verra Mobility. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Verra Mobility Corp has no effect on the direction of SUMITOMO i.e., SUMITOMO and Verra Mobility go up and down completely randomly.
Pair Corralation between SUMITOMO and Verra Mobility
Assuming the 90 days trading horizon SUMITOMO MITSUI FINL is expected to generate 0.09 times more return on investment than Verra Mobility. However, SUMITOMO MITSUI FINL is 11.25 times less risky than Verra Mobility. It trades about 0.1 of its potential returns per unit of risk. Verra Mobility Corp is currently generating about -0.03 per unit of risk. If you would invest 9,511 in SUMITOMO MITSUI FINL on September 3, 2024 and sell it today you would earn a total of 205.00 from holding SUMITOMO MITSUI FINL or generate 2.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.4% |
| Values | Daily Returns |
SUMITOMO MITSUI FINL vs. Verra Mobility Corp
Performance |
| Timeline |
| SUMITOMO MITSUI FINL |
| Verra Mobility Corp |
SUMITOMO and Verra Mobility Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SUMITOMO and Verra Mobility
The main advantage of trading using opposite SUMITOMO and Verra Mobility positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SUMITOMO position performs unexpectedly, Verra Mobility 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 Verra Mobility will offset losses from the drop in Verra Mobility's long position.| SUMITOMO vs. AEP TEX INC | SUMITOMO vs. US BANK NATIONAL | SUMITOMO vs. Jackson Financial | SUMITOMO vs. MetLife |
| Verra Mobility vs. International Money Express | Verra Mobility vs. Option Care Health | Verra Mobility vs. HUMANA INC | Verra Mobility vs. Aquagold International |
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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