Correlation Between Fine Besteel and SSR
Can any of the company-specific risk be diversified away by investing in both Fine Besteel and SSR 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 Fine Besteel and SSR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fine Besteel Co and SSR Inc, you can compare the effects of market volatilities on Fine Besteel and SSR 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 Fine Besteel with a short position of SSR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fine Besteel and SSR.
Diversification Opportunities for Fine Besteel and SSR
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Fine and SSR is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Fine Besteel Co and SSR Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SSR Inc and Fine Besteel 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 Fine Besteel Co are associated (or correlated) with SSR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SSR Inc has no effect on the direction of Fine Besteel i.e., Fine Besteel and SSR go up and down completely randomly.
Pair Corralation between Fine Besteel and SSR
Assuming the 90 days trading horizon Fine Besteel Co is expected to generate 2.62 times more return on investment than SSR. However, Fine Besteel is 2.62 times more volatile than SSR Inc. It trades about 0.09 of its potential returns per unit of risk. SSR Inc is currently generating about -0.09 per unit of risk. If you would invest 97,000 in Fine Besteel Co on August 28, 2024 and sell it today you would earn a total of 15,200 from holding Fine Besteel Co or generate 15.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fine Besteel Co vs. SSR Inc
Performance |
| Timeline |
| Fine Besteel |
| SSR Inc |
Fine Besteel and SSR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fine Besteel and SSR
The main advantage of trading using opposite Fine Besteel and SSR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fine Besteel position performs unexpectedly, SSR 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 SSR will offset losses from the drop in SSR's long position.| Fine Besteel vs. Raontech | Fine Besteel vs. Yura Tech Co | Fine Besteel vs. FNSTech Co | Fine Besteel vs. CU Tech Corp |
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 Stocks Directory module to find actively traded stocks across global markets.
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