Correlation Between Herman Miller and Summit Materials

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Herman Miller and Summit Materials at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Herman Miller and Summit Materials into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Herman Miller and Summit Materials, you can compare the effects of market volatilities on Herman Miller 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 Herman Miller with a short position of Summit Materials. Check out your portfolio center. Please also check ongoing floating volatility patterns of Herman Miller and Summit Materials.

Diversification Opportunities for Herman Miller and Summit Materials

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Herman and Summit is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Herman Miller and Summit Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Summit Materials and Herman Miller 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 Herman Miller 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 Herman Miller i.e., Herman Miller and Summit Materials go up and down completely randomly.

Pair Corralation between Herman Miller and Summit Materials

If you would invest  4,239  in Summit Materials on December 30, 2023 and sell it today you would earn a total of  218.00  from holding Summit Materials or generate 5.14% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

Herman Miller  vs.  Summit Materials

 Performance 
       Timeline  
Herman Miller 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days Herman Miller has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable technical indicators, Herman Miller is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.
Summit Materials 

Risk-Adjusted Performance

10 of 100

 
Low
 
High
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Summit Materials are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, Summit Materials displayed solid returns over the last few months and may actually be approaching a breakup point.

Herman Miller and Summit Materials Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Herman Miller and Summit Materials

The main advantage of trading using opposite Herman Miller and Summit Materials positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Herman Miller 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.
The idea behind Herman Miller and Summit Materials pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.

Other Complementary Tools

Portfolio Holdings
Check your current holdings and cash postion to detemine if your portfolio needs rebalancing
Funds Screener
Find actively-traded funds from around the world traded on over 30 global exchanges
Money Managers
Screen money managers from public funds and ETFs managed around the world
Portfolio Diagnostics
Use generated alerts and portfolio events aggregator to diagnose current holdings
Companies Directory
Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals
Stock Screener
Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook.
Portfolio Center
All portfolio management and optimization tools to improve performance of your portfolios
Alpha Finder
Use alpha and beta coefficients to find investment opportunities after accounting for the risk
Odds Of Bankruptcy
Get analysis of equity chance of financial distress in the next 2 years
Theme Ratings
Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance