Correlation Between 3M and 893574AM5
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By analyzing existing cross correlation between 3M Company and TRANSCONTINENTAL GAS PIPE, you can compare the effects of market volatilities on 3M and 893574AM5 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 3M with a short position of 893574AM5. Check out your portfolio center. Please also check ongoing floating volatility patterns of 3M and 893574AM5.
Diversification Opportunities for 3M and 893574AM5
Very good diversification
The 3 months correlation between 3M and 893574AM5 is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding 3M Company and TRANSCONTINENTAL GAS PIPE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TRANSCONTINENTAL GAS PIPE and 3M 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 3M Company are associated (or correlated) with 893574AM5. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TRANSCONTINENTAL GAS PIPE has no effect on the direction of 3M i.e., 3M and 893574AM5 go up and down completely randomly.
Pair Corralation between 3M and 893574AM5
Considering the 90-day investment horizon 3M Company is expected to generate 1.72 times more return on investment than 893574AM5. However, 3M is 1.72 times more volatile than TRANSCONTINENTAL GAS PIPE. It trades about 0.06 of its potential returns per unit of risk. TRANSCONTINENTAL GAS PIPE is currently generating about -0.09 per unit of risk. If you would invest 15,533 in 3M Company on October 8, 2025 and sell it today you would earn a total of 822.00 from holding 3M Company or generate 5.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 44.26% |
| Values | Daily Returns |
3M Company vs. TRANSCONTINENTAL GAS PIPE
Performance |
| Timeline |
| 3M Company |
| TRANSCONTINENTAL GAS PIPE |
3M and 893574AM5 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 3M and 893574AM5
The main advantage of trading using opposite 3M and 893574AM5 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 3M position performs unexpectedly, 893574AM5 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 893574AM5 will offset losses from the drop in 893574AM5's long position.The idea behind 3M Company and TRANSCONTINENTAL GAS PIPE 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.| 893574AM5 vs. AEP TEX INC | 893574AM5 vs. Deutsche Bank AG | 893574AM5 vs. MGC Ventures | 893574AM5 vs. Drgerwerk AG Co |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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