Correlation Between BLUESCOPE STEEL and Koninklijke Ahold
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By analyzing existing cross correlation between BLUESCOPE STEEL and Koninklijke Ahold Delhaize, you can compare the effects of market volatilities on BLUESCOPE STEEL and Koninklijke Ahold 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 Koninklijke Ahold. Check out your portfolio center. Please also check ongoing floating volatility patterns of BLUESCOPE STEEL and Koninklijke Ahold.
Diversification Opportunities for BLUESCOPE STEEL and Koninklijke Ahold
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between BLUESCOPE and Koninklijke is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding BLUESCOPE STEEL and Koninklijke Ahold Delhaize in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Koninklijke Ahold 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 Koninklijke Ahold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Koninklijke Ahold has no effect on the direction of BLUESCOPE STEEL i.e., BLUESCOPE STEEL and Koninklijke Ahold go up and down completely randomly.
Pair Corralation between BLUESCOPE STEEL and Koninklijke Ahold
Assuming the 90 days trading horizon BLUESCOPE STEEL is expected to generate 1.19 times more return on investment than Koninklijke Ahold. However, BLUESCOPE STEEL is 1.19 times more volatile than Koninklijke Ahold Delhaize. It trades about 0.04 of its potential returns per unit of risk. Koninklijke Ahold Delhaize is currently generating about 0.03 per unit of risk. If you would invest 1,047 in BLUESCOPE STEEL on September 1, 2024 and sell it today you would earn a total of 303.00 from holding BLUESCOPE STEEL or generate 28.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
BLUESCOPE STEEL vs. Koninklijke Ahold Delhaize
Performance |
| Timeline |
| BLUESCOPE STEEL |
| Koninklijke Ahold |
BLUESCOPE STEEL and Koninklijke Ahold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BLUESCOPE STEEL and Koninklijke Ahold
The main advantage of trading using opposite BLUESCOPE STEEL and Koninklijke Ahold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BLUESCOPE STEEL position performs unexpectedly, Koninklijke Ahold 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 Koninklijke Ahold will offset losses from the drop in Koninklijke Ahold's long position.| BLUESCOPE STEEL vs. Mizuho Financial Group | BLUESCOPE STEEL vs. The Hanover Insurance | BLUESCOPE STEEL vs. Consolidated Communications Holdings | BLUESCOPE STEEL vs. Charter Communications |
| Koninklijke Ahold vs. GREENX METALS LTD | Koninklijke Ahold vs. AIR PRODCHEMICALS | Koninklijke Ahold vs. BLUESCOPE STEEL | Koninklijke Ahold vs. Lion One Metals |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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