Correlation Between Summit Materials and CCOM
Can any of the company-specific risk be diversified away by investing in both Summit Materials and CCOM 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 Summit Materials and CCOM into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Summit Materials and CCOM Group, you can compare the effects of market volatilities on Summit Materials and CCOM 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 Summit Materials with a short position of CCOM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Summit Materials and CCOM.
Diversification Opportunities for Summit Materials and CCOM
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Summit and CCOM is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Summit Materials and CCOM Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CCOM Group and Summit Materials 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 Summit Materials are associated (or correlated) with CCOM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CCOM Group has no effect on the direction of Summit Materials i.e., Summit Materials and CCOM go up and down completely randomly.
Pair Corralation between Summit Materials and CCOM
If you would invest 2,372 in Summit Materials on January 19, 2024 and sell it today you would earn a total of 1,475 from holding Summit Materials or generate 62.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Summit Materials vs. CCOM Group
Performance |
| Timeline |
| Summit Materials |
| CCOM Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Summit Materials and CCOM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Summit Materials and CCOM
The main advantage of trading using opposite Summit Materials and CCOM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Summit Materials position performs unexpectedly, CCOM 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 CCOM will offset losses from the drop in CCOM's long position.| Summit Materials vs. James Hardie Industries | Summit Materials vs. Loma Negra Compania | Summit Materials vs. Eagle Materials | Summit Materials vs. Cementos Pacasmayo SAA |
| CCOM vs. ZK International Group | CCOM vs. Ternium SA ADR | CCOM vs. Seche Environnement SA | CCOM vs. Olympic Steel |
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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