Correlation Between Algoma Steel and 90331HPL1
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By analyzing existing cross correlation between Algoma Steel Group and US BANK NATIONAL, you can compare the effects of market volatilities on Algoma Steel and 90331HPL1 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 90331HPL1. Check out your portfolio center. Please also check ongoing floating volatility patterns of Algoma Steel and 90331HPL1.
Diversification Opportunities for Algoma Steel and 90331HPL1
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Algoma and 90331HPL1 is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Algoma Steel Group and US BANK NATIONAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on US BANK NATIONAL 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 90331HPL1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of US BANK NATIONAL has no effect on the direction of Algoma Steel i.e., Algoma Steel and 90331HPL1 go up and down completely randomly.
Pair Corralation between Algoma Steel and 90331HPL1
Given the investment horizon of 90 days Algoma Steel Group is expected to generate 2.05 times more return on investment than 90331HPL1. However, Algoma Steel is 2.05 times more volatile than US BANK NATIONAL. It trades about 0.04 of its potential returns per unit of risk. US BANK NATIONAL is currently generating about -0.17 per unit of risk. If you would invest 1,055 in Algoma Steel Group on August 29, 2024 and sell it today you would earn a total of 16.00 from holding Algoma Steel Group or generate 1.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 72.73% |
| Values | Daily Returns |
Algoma Steel Group vs. US BANK NATIONAL
Performance |
| Timeline |
| Algoma Steel Group |
| US BANK NATIONAL |
Algoma Steel and 90331HPL1 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Algoma Steel and 90331HPL1
The main advantage of trading using opposite Algoma Steel and 90331HPL1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Algoma Steel position performs unexpectedly, 90331HPL1 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 90331HPL1 will offset losses from the drop in 90331HPL1's long position.| Algoma Steel vs. Labrador Gold Corp | Algoma Steel vs. Aurion Resources | Algoma Steel vs. Puma Exploration | Algoma Steel vs. Golden Star Resource |
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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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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