Steel Dynamics Correlations

STLD Stock

USD 130.71 1.54 1.19%

The current 90-days correlation between Steel Dynamics and Cleveland Cliffs is 0.76 (i.e., Poor diversification). The correlation of Steel Dynamics is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.

Steel Dynamics Correlation With Market

Average diversification

The correlation between Steel Dynamics and DJI is 0.16 (i.e., Average diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Steel Dynamics and DJI in the same portfolio, assuming nothing else is changed.

Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Steel Dynamics. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in bureau of economic analysis.

For information on how to trade Steel Stock refer to our How to Trade Steel Stock guide.

Moving together with Steel Stock

0.88	X	United States Steel Sell-off Trend	Pair Corr
0.87	AA	Alcoa Corp	Pair Corr
0.76	MT	ArcelorMittal SA ADR Earnings Call This Week	Pair Corr
0.95	RS	Reliance Steel Aluminum	Pair Corr
0.86	TX	Ternium SA ADR	Pair Corr
0.84	WS	Worthington Steel	Pair Corr
0.71	BAK	Braskem SA Class	Pair Corr
0.64	DOW	Dow Inc Downward Rally	Pair Corr
0.8	GGB	Gerdau SA ADR	Pair Corr
0.62	PKX	POSCO Holdings	Pair Corr
0.8	SID	Companhia Siderurgica	Pair Corr
0.84	ZEUS	Olympic Steel	Pair Corr
0.9	KALU	Kaiser Aluminum	Pair Corr
0.77	ASTL	Algoma Steel Group Earnings Call This Week	Pair Corr
0.66	AUST	Austin Gold Corp	Pair Corr
0.71	CENX	Century Aluminum	Pair Corr
0.89	CSTM	Constellium Nv	Pair Corr
0.74	CC	Chemours	Pair Corr
0.83	DD	Dupont De Nemours Earnings Call This Week	Pair Corr
0.7	IE	Ivanhoe Electric	Pair Corr

Moving against Steel Stock

0.59

ZKIN

ZK International

Pair Corr

Related Correlations Analysis

	CLF	X	MT	RS	NUE	GGB	ZEUS	SCHN	CMC	PKX
CLF		0.84	0.61	0.7	0.9	0.62	0.65	-0.57	0.67	0.86	CLF
X	0.84		0.63	0.79	0.87	0.52	0.62	-0.6	0.63	0.71	X
MT	0.61	0.63		0.82	0.73	0.82	0.85	-0.22	0.81	0.42	MT
RS	0.7	0.79	0.82		0.91	0.85	0.91	-0.52	0.93	0.45	RS
NUE	0.9	0.87	0.73	0.91		0.8	0.82	-0.67	0.87	0.73	NUE
GGB	0.62	0.52	0.82	0.85	0.8		0.95	-0.36	0.95	0.4	GGB
ZEUS	0.65	0.62	0.85	0.91	0.82	0.95		-0.33	0.96	0.38	ZEUS
SCHN	-0.57	-0.6	-0.22	-0.52	-0.67	-0.36	-0.33		-0.51	-0.45	SCHN
CMC	0.67	0.63	0.81	0.93	0.87	0.95	0.96	-0.51		0.39	CMC
PKX	0.86	0.71	0.42	0.45	0.73	0.4	0.38	-0.45	0.39		PKX
	CLF	X	MT	RS	NUE	GGB	ZEUS	SCHN	CMC	PKX

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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

CMC	+ 0.96	ZEUS
ZEUS	+ 0.95	GGB
CMC	+ 0.95	GGB
CMC	+ 0.93	RS
NUE	+ 0.91	RS
ZEUS	+ 0.91	RS

High negative correlations

SCHN	- 0.67	NUE
SCHN	- 0.6	X
SCHN	- 0.57	CLF
SCHN	- 0.52	RS
CMC	- 0.51	SCHN
PKX	- 0.45	SCHN

Risk-Adjusted Indicators

There is a big difference between Steel Stock performing well and Steel Dynamics Company 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 Steel Dynamics' 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
CLF	2.67	(0.25)	0.00	0.45	0.00	0.00	4.59	(4.31)	26.95
X	2.53	(0.09)	0.00	(0.22)	0.00	0.00	6.13	(5.55)	17.96
MT	1.47	0.06	0.01	0.22	1.61	(1.72)	3.52	(2.93)	8.24
RS	1.34	0.04	0.00	0.16	1.50	(1.55)	2.91	(2.69)	16.01
NUE	1.75	(0.18)	0.00	(0.21)	0.00	0.00	3.99	(3.82)	21.07
GGB	1.57	(0.09)	0.00	(0.14)	0.00	0.00	3.53	(3.74)	19.06
ZEUS	2.14	(0.06)	(0.02)	0.02	2.48	(2.24)	5.36	(3.64)	16.92
SCHN	1.66	0.09	0.01	0.64	2.05	(1.68)	3.12	(3.33)	13.80
CMC	1.75	(0.07)	(0.04)	(0.01)	2.01	(2.07)	3.36	(3.33)	19.11
PKX	1.65	(0.46)	0.00	(1.16)	0.00	0.00	3.50	(4.36)	10.23

Steel Dynamics Corporate Executives

Elected by the shareholders, the Steel Dynamics' board of directors comprises two types of representatives: Steel Dynamics inside directors who are chosen from within the company, and outside directors, selected externally and held independent of Steel. The board's role is to monitor Steel Dynamics' management team and ensure that shareholders' interests are well served. Steel Dynamics' inside directors are responsible for reviewing and approving budgets prepared by upper management to implement core corporate initiatives and projects. On the other hand, Steel Dynamics' outside directors are responsible for providing unbiased perspectives on the board's policies.

Theresa Wagler

CFO, Chief Accounting Officer and Executive VP

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