Correlation Between Compaa Minera and Cleveland Cliffs
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By analyzing existing cross correlation between Compaa Minera Autln and Cleveland Cliffs, you can compare the effects of market volatilities on Compaa Minera and Cleveland Cliffs 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 Compaa Minera with a short position of Cleveland Cliffs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Compaa Minera and Cleveland Cliffs.
Diversification Opportunities for Compaa Minera and Cleveland Cliffs
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Compaa and Cleveland is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Compaa Minera Autln and Cleveland Cliffs in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cleveland Cliffs and Compaa Minera 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 Compaa Minera Autln are associated (or correlated) with Cleveland Cliffs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cleveland Cliffs has no effect on the direction of Compaa Minera i.e., Compaa Minera and Cleveland Cliffs go up and down completely randomly.
Pair Corralation between Compaa Minera and Cleveland Cliffs
Assuming the 90 days trading horizon Compaa Minera Autln is expected to under-perform the Cleveland Cliffs. But the stock apears to be less risky and, when comparing its historical volatility, Compaa Minera Autln is 1.1 times less risky than Cleveland Cliffs. The stock trades about 0.0 of its potential returns per unit of risk. The Cleveland Cliffs is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 19,000 in Cleveland Cliffs on November 2, 2024 and sell it today you would earn a total of 1,850 from holding Cleveland Cliffs or generate 9.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Compaa Minera Autln vs. Cleveland Cliffs
Performance |
| Timeline |
| Compaa Minera Autln |
| Cleveland Cliffs |
Compaa Minera and Cleveland Cliffs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Compaa Minera and Cleveland Cliffs
The main advantage of trading using opposite Compaa Minera and Cleveland Cliffs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Compaa Minera position performs unexpectedly, Cleveland Cliffs 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 Cleveland Cliffs will offset losses from the drop in Cleveland Cliffs' long position.| Compaa Minera vs. Martin Marietta Materials | Compaa Minera vs. First Republic Bank | Compaa Minera vs. McEwen Mining | Compaa Minera vs. Deutsche Bank Aktiengesellschaft |
| Cleveland Cliffs vs. Samsung Electronics Co | Cleveland Cliffs vs. Grupo Hotelero Santa | Cleveland Cliffs vs. GMxico Transportes SAB | Cleveland Cliffs vs. Micron 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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