Basic Materials Correlations
| IMAT Index | 5,762 35.48 0.62% |
The current 90-days correlation between Basic Materials and CM Hospitalar SA is 0.13 (i.e., Average diversification). A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Basic Materials moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Basic Materials moves in either direction, the perfectly negatively correlated security will move in the opposite direction.
The ability to find closely correlated positions to Basic Materials could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Basic Materials when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Basic Materials - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Basic Materials to buy it.
Related Correlations Analysis
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Correlation Matchups
Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.High positive correlations
| High negative correlations
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Risk-Adjusted Indicators
There is a big difference between Basic Index performing well and Basic Materials Index doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Basic Materials' multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.| Mean Deviation | Jensen Alpha | Sortino Ratio | Treynor Ratio | Semi Deviation | Expected Shortfall | Potential Upside | Value @Risk | Maximum Drawdown | ||
|---|---|---|---|---|---|---|---|---|---|---|
| VVEO3 | 3.29 | (0.12) | 0.00 | 0.06 | 3.99 | 8.15 | 31.24 | |||
| GOAU4 | 1.30 | 0.02 | (0.01) | 0.15 | 1.53 | 3.42 | 14.19 | |||
| AVGO34 | 1.95 | 0.06 | (0.01) | 0.37 | 2.88 | 3.86 | 12.14 | |||
| MLAS3 | 2.33 | (0.50) | 0.00 | (0.42) | 0.00 | 5.88 | 12.74 | |||
| P2LN34 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||
| CVSH34 | 1.83 | 0.11 | 0.01 | 0.54 | 2.60 | 4.24 | 23.09 | |||
| LEVE3 | 0.86 | (0.22) | 0.00 | (0.52) | 0.00 | 1.96 | 7.84 | |||
| RSUL4 | 0.94 | (0.16) | 0.00 | (0.27) | 0.00 | 1.96 | 6.19 |
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Basic Materials Distribution of Returns
Predicted Return Density |
| Returns |
What Drives a Basic Materials Price Volatility?
Several factors can influence a index's market volatility:Industry
Specific events can influence volatility within a particular industry. For instance, a significant weather upheaval in a crucial oil-production site may cause oil prices to increase in the oil sector. The direct result will be the rise in the stock price of oil distribution companies. Similarly, any government regulation in a specific industry could negatively influence stock prices due to increased regulations on compliance that may impact the company's future earnings and growth.Political and Economic environment
When governments make significant decisions regarding trade agreements, policies, and legislation regarding specific industries, they will influence stock prices. Everything from speeches to elections may influence investors, who can directly influence the stock prices in any particular industry. The prevailing economic situation also plays a significant role in stock prices. When the economy is doing well, investors will have a positive reaction and hence, better stock prices and vice versa.The Company's Performance
Sometimes volatility will only affect an individual company. For example, a revolutionary product launch or strong earnings report may attract many investors to purchase the company. This positive attention will raise the company's stock price. In contrast, product recalls and data breaches may negatively influence a company's stock prices.Basic Materials Against Global Markets
| CROBEX | 0.79 | |||||
| IMAT | 0.62 | |||||
| PSI 20 | 0.04 | |||||
| NYA | 0.05 | |||||
| GDAXI | 0.18 | |||||
| Budapest | 1.28 | |||||
| IDX 30 | 1.48 | |||||
| TWII | 1.52 | |||||
| ISEQ 20 | 1.59 |
