Correlation Between Sumitomo Mitsui and Education Management
Can any of the company-specific risk be diversified away by investing in both Sumitomo Mitsui and Education Management 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 Sumitomo Mitsui and Education Management into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sumitomo Mitsui Financial and Education Management Corp, you can compare the effects of market volatilities on Sumitomo Mitsui and Education Management 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 Sumitomo Mitsui with a short position of Education Management. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sumitomo Mitsui and Education Management.
Diversification Opportunities for Sumitomo Mitsui and Education Management
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sumitomo and Education is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sumitomo Mitsui Financial and Education Management Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Education Management Corp and Sumitomo Mitsui 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 Sumitomo Mitsui Financial are associated (or correlated) with Education Management. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Education Management Corp has no effect on the direction of Sumitomo Mitsui i.e., Sumitomo Mitsui and Education Management go up and down completely randomly.
Pair Corralation between Sumitomo Mitsui and Education Management
If you would invest 1,646 in Sumitomo Mitsui Financial on September 11, 2025 and sell it today you would earn a total of 238.00 from holding Sumitomo Mitsui Financial or generate 14.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 98.44% |
| Values | Daily Returns |
Sumitomo Mitsui Financial vs. Education Management Corp
Performance |
| Timeline |
| Sumitomo Mitsui Financial |
| Education Management Corp |
Sumitomo Mitsui and Education Management Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sumitomo Mitsui and Education Management
The main advantage of trading using opposite Sumitomo Mitsui and Education Management positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sumitomo Mitsui position performs unexpectedly, Education Management 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 Education Management will offset losses from the drop in Education Management's long position.| Sumitomo Mitsui vs. Mitsubishi UFJ Financial | Sumitomo Mitsui vs. Natwest Group PLC | Sumitomo Mitsui vs. Barclays PLC ADR | Sumitomo Mitsui vs. Bank of America |
| Education Management vs. Chipotle Mexican Grill | Education Management vs. Yum Brands | Education Management vs. Starbucks | Education Management vs. Darden Restaurants |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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