Correlation Between BLUESCOPE STEEL and ABO-GROUP ENVIRONMENT
Can any of the company-specific risk be diversified away by investing in both BLUESCOPE STEEL and ABO-GROUP ENVIRONMENT 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 BLUESCOPE STEEL and ABO-GROUP ENVIRONMENT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BLUESCOPE STEEL and ABO GROUP ENVIRONMENT, you can compare the effects of market volatilities on BLUESCOPE STEEL and ABO-GROUP ENVIRONMENT 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 BLUESCOPE STEEL with a short position of ABO-GROUP ENVIRONMENT. Check out your portfolio center. Please also check ongoing floating volatility patterns of BLUESCOPE STEEL and ABO-GROUP ENVIRONMENT.
Diversification Opportunities for BLUESCOPE STEEL and ABO-GROUP ENVIRONMENT
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between BLUESCOPE and ABO-GROUP is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding BLUESCOPE STEEL and ABO GROUP ENVIRONMENT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ABO GROUP ENVIRONMENT and BLUESCOPE 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 BLUESCOPE STEEL are associated (or correlated) with ABO-GROUP ENVIRONMENT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ABO GROUP ENVIRONMENT has no effect on the direction of BLUESCOPE STEEL i.e., BLUESCOPE STEEL and ABO-GROUP ENVIRONMENT go up and down completely randomly.
Pair Corralation between BLUESCOPE STEEL and ABO-GROUP ENVIRONMENT
Assuming the 90 days trading horizon BLUESCOPE STEEL is expected to generate 3.2 times more return on investment than ABO-GROUP ENVIRONMENT. However, BLUESCOPE STEEL is 3.2 times more volatile than ABO GROUP ENVIRONMENT. It trades about 0.36 of its potential returns per unit of risk. ABO GROUP ENVIRONMENT is currently generating about -0.39 per unit of risk. If you would invest 1,165 in BLUESCOPE STEEL on November 27, 2024 and sell it today you would earn a total of 305.00 from holding BLUESCOPE STEEL or generate 26.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BLUESCOPE STEEL vs. ABO GROUP ENVIRONMENT
Performance |
| Timeline |
| BLUESCOPE STEEL |
| ABO GROUP ENVIRONMENT |
BLUESCOPE STEEL and ABO-GROUP ENVIRONMENT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BLUESCOPE STEEL and ABO-GROUP ENVIRONMENT
The main advantage of trading using opposite BLUESCOPE STEEL and ABO-GROUP ENVIRONMENT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BLUESCOPE STEEL position performs unexpectedly, ABO-GROUP ENVIRONMENT 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 ABO-GROUP ENVIRONMENT will offset losses from the drop in ABO-GROUP ENVIRONMENT's long position.| BLUESCOPE STEEL vs. FIREWEED METALS P | BLUESCOPE STEEL vs. Japan Medical Dynamic | BLUESCOPE STEEL vs. PEPTONIC MEDICAL | BLUESCOPE STEEL vs. Jacquet Metal Service |
| ABO-GROUP ENVIRONMENT vs. MAVEN WIRELESS SWEDEN | ABO-GROUP ENVIRONMENT vs. SIERRA METALS | ABO-GROUP ENVIRONMENT vs. SERI INDUSTRIAL EO | ABO-GROUP ENVIRONMENT vs. BJs Wholesale Club |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |