Correlation Between Algoma Steel and MARKEL
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By analyzing existing cross correlation between Algoma Steel Group and MARKEL P 43, you can compare the effects of market volatilities on Algoma Steel and MARKEL 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 Algoma Steel with a short position of MARKEL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Algoma Steel and MARKEL.
Diversification Opportunities for Algoma Steel and MARKEL
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Algoma and MARKEL is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Algoma Steel Group and MARKEL P 43 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MARKEL P 43 and Algoma 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 Algoma Steel Group are associated (or correlated) with MARKEL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MARKEL P 43 has no effect on the direction of Algoma Steel i.e., Algoma Steel and MARKEL go up and down completely randomly.
Pair Corralation between Algoma Steel and MARKEL
Given the investment horizon of 90 days Algoma Steel Group is expected to under-perform the MARKEL. In addition to that, Algoma Steel is 1.82 times more volatile than MARKEL P 43. It trades about -0.3 of its total potential returns per unit of risk. MARKEL P 43 is currently generating about 0.44 per unit of volatility. If you would invest 7,946 in MARKEL P 43 on September 13, 2024 and sell it today you would earn a total of 306.00 from holding MARKEL P 43 or generate 3.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 45.45% |
| Values | Daily Returns |
Algoma Steel Group vs. MARKEL P 43
Performance |
| Timeline |
| Algoma Steel Group |
| MARKEL P 43 |
Algoma Steel and MARKEL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Algoma Steel and MARKEL
The main advantage of trading using opposite Algoma Steel and MARKEL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Algoma Steel position performs unexpectedly, MARKEL 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 MARKEL will offset losses from the drop in MARKEL's long position.| Algoma Steel vs. Olympic Steel | Algoma Steel vs. Steel Dynamics | Algoma Steel vs. Commercial Metals | Algoma Steel vs. Nucor 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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