Correlation Between INTNED and Summit Materials

Can any of the company-specific risk be diversified away by investing in both INTNED 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 INTNED and Summit Materials into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between INTNED 61032 28 MAR 26 and Summit Materials, you can compare the effects of market volatilities on INTNED 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 INTNED with a short position of Summit Materials. Check out your portfolio center. Please also check ongoing floating volatility patterns of INTNED and Summit Materials.

Diversification Opportunities for INTNED and Summit Materials

-0.28

Correlation Coefficient

INTNED  Summit Materials

Very good diversification

The 3 months correlation between INTNED and Summit is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding INTNED 61032 28 MAR 26 and Summit Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Summit Materials and INTNED 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 INTNED 61032 28 MAR 26 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 INTNED i.e., INTNED and Summit Materials go up and down completely randomly.

Pair Corralation between INTNED and Summit Materials

Assuming the 90 days trading horizon INTNED 61032 28 MAR 26 is expected to under-perform the Summit Materials. But the bond apears to be less risky and, when comparing its historical volatility, INTNED 61032 28 MAR 26 is 3.53 times less risky than Summit Materials. The bond trades about -0.07 of its potential returns per unit of risk. The Summit Materials is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  3,693  in Summit Materials on September 12, 2024 and sell it today you would earn a total of  1,389  from holding Summit Materials or generate 37.61% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	44.35%
Values	Daily Returns

INTNED 61032 28 MAR 26  vs.  Summit Materials

INTNED 61032 28

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days INTNED 61032 28 MAR 26 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest uncertain performance, the Bond's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for INTNED 61032 28 MAR 26 investors.

Summit Materials

Risk-Adjusted Performance

19 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Summit Materials are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Summit Materials displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with INTNED and Summit Materials

The main advantage of trading using opposite INTNED and Summit Materials positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INTNED 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 INTNED 61032 28 MAR 26 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.

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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.