Correlation Between ArcelorMittal and Dhler SA
Can any of the company-specific risk be diversified away by investing in both ArcelorMittal and Dhler SA 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 ArcelorMittal and Dhler SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ArcelorMittal SA and Dhler SA, you can compare the effects of market volatilities on ArcelorMittal and Dhler SA 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 ArcelorMittal with a short position of Dhler SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of ArcelorMittal and Dhler SA.
Diversification Opportunities for ArcelorMittal and Dhler SA
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ArcelorMittal and Dhler is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding ArcelorMittal SA and Dhler SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dhler SA and ArcelorMittal 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 ArcelorMittal SA are associated (or correlated) with Dhler SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dhler SA has no effect on the direction of ArcelorMittal i.e., ArcelorMittal and Dhler SA go up and down completely randomly.
Pair Corralation between ArcelorMittal and Dhler SA
Assuming the 90 days trading horizon ArcelorMittal SA is expected to generate 2.46 times more return on investment than Dhler SA. However, ArcelorMittal is 2.46 times more volatile than Dhler SA. It trades about 0.25 of its potential returns per unit of risk. Dhler SA is currently generating about 0.15 per unit of risk. If you would invest 6,972 in ArcelorMittal SA on September 13, 2024 and sell it today you would earn a total of 787.00 from holding ArcelorMittal SA or generate 11.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ArcelorMittal SA vs. Dhler SA
Performance |
| Timeline |
| ArcelorMittal SA |
| Dhler SA |
ArcelorMittal and Dhler SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ArcelorMittal and Dhler SA
The main advantage of trading using opposite ArcelorMittal and Dhler SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ArcelorMittal position performs unexpectedly, Dhler SA 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 Dhler SA will offset losses from the drop in Dhler SA's long position.| ArcelorMittal vs. GP Investments | ArcelorMittal vs. Fidelity National Information | ArcelorMittal vs. Apartment Investment and | ArcelorMittal vs. Capital One Financial |
| Dhler SA vs. Companhia de Tecidos | Dhler SA vs. Electro Ao Altona | Dhler SA vs. Companhia Tecidos Santanense | Dhler SA vs. Grazziotin SA |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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