Correlation Between Summit Global and Exchange Traded

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

By analyzing existing cross correlation between Summit Global Investments and Exchange Traded Concepts, you can compare the effects of market volatilities on Summit Global and Exchange Traded 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 Global with a short position of Exchange Traded. Check out your portfolio center. Please also check ongoing floating volatility patterns of Summit Global and Exchange Traded.

Diversification Opportunities for Summit Global and Exchange Traded

0.7

Correlation Coefficient

Summit Global  Exchange Traded

Poor diversification

The 3 months correlation between Summit and Exchange is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Summit Global Investments and Exchange Traded Concepts in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exchange Traded Concepts and Summit Global 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 Global Investments are associated (or correlated) with Exchange Traded. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exchange Traded Concepts has no effect on the direction of Summit Global i.e., Summit Global and Exchange Traded go up and down completely randomly.

Pair Corralation between Summit Global and Exchange Traded

Assuming the 90 days horizon Summit Global is expected to generate 2.45 times less return on investment than Exchange Traded. But when comparing it to its historical volatility, Summit Global Investments is 1.54 times less risky than Exchange Traded. It trades about 0.07 of its potential returns per unit of risk. Exchange Traded Concepts is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  2,661  in Exchange Traded Concepts on August 21, 2025 and sell it today you would earn a total of  138.00  from holding Exchange Traded Concepts or generate 5.19% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Summit Global Investments  vs.  Exchange Traded Concepts

Summit Global Investments

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Summit Global Investments are ranked lower than 5 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Summit Global is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Exchange Traded Concepts

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Exchange Traded Concepts are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, Exchange Traded is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Summit Global and Exchange Traded

The main advantage of trading using opposite Summit Global and Exchange Traded positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Summit Global position performs unexpectedly, Exchange Traded 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 Exchange Traded will offset losses from the drop in Exchange Traded's long position.

The idea behind Summit Global Investments and Exchange Traded Concepts 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.