Correlation Between Mycron Steel and CSC Steel
Can any of the company-specific risk be diversified away by investing in both Mycron Steel and CSC Steel 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 Mycron Steel and CSC Steel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mycron Steel Bhd and CSC Steel Holdings, you can compare the effects of market volatilities on Mycron Steel and CSC Steel 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 Mycron Steel with a short position of CSC Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mycron Steel and CSC Steel.
Diversification Opportunities for Mycron Steel and CSC Steel
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mycron and CSC is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Mycron Steel Bhd and CSC Steel Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSC Steel Holdings and Mycron Steel 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 Mycron Steel Bhd are associated (or correlated) with CSC Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSC Steel Holdings has no effect on the direction of Mycron Steel i.e., Mycron Steel and CSC Steel go up and down completely randomly.
Pair Corralation between Mycron Steel and CSC Steel
Assuming the 90 days trading horizon Mycron Steel Bhd is expected to generate 2.36 times more return on investment than CSC Steel. However, Mycron Steel is 2.36 times more volatile than CSC Steel Holdings. It trades about 0.01 of its potential returns per unit of risk. CSC Steel Holdings is currently generating about 0.02 per unit of risk. If you would invest 42.00 in Mycron Steel Bhd on August 24, 2024 and sell it today you would lose (3.00) from holding Mycron Steel Bhd or give up 7.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mycron Steel Bhd vs. CSC Steel Holdings
Performance |
| Timeline |
| Mycron Steel Bhd |
| CSC Steel Holdings |
Mycron Steel and CSC Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mycron Steel and CSC Steel
The main advantage of trading using opposite Mycron Steel and CSC Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mycron Steel position performs unexpectedly, CSC Steel 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 CSC Steel will offset losses from the drop in CSC Steel's long position.| Mycron Steel vs. Press Metal Bhd | Mycron Steel vs. PMB Technology Bhd | Mycron Steel vs. Pantech Group Holdings | Mycron Steel vs. CSC Steel Holdings |
| CSC Steel vs. Press Metal Bhd | CSC Steel vs. PMB Technology Bhd | CSC Steel vs. Pantech Group Holdings | CSC Steel vs. Coraza Integrated Technology |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |