Correlation Between Bluescope Steel and Classic Minerals
Can any of the company-specific risk be diversified away by investing in both Bluescope Steel and Classic Minerals 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 Classic Minerals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bluescope Steel and Classic Minerals, you can compare the effects of market volatilities on Bluescope Steel and Classic Minerals 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 Classic Minerals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bluescope Steel and Classic Minerals.
Diversification Opportunities for Bluescope Steel and Classic Minerals
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bluescope and Classic is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bluescope Steel and Classic Minerals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Classic Minerals 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 Classic Minerals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Classic Minerals has no effect on the direction of Bluescope Steel i.e., Bluescope Steel and Classic Minerals go up and down completely randomly.
Pair Corralation between Bluescope Steel and Classic Minerals
If you would invest 2,060 in Bluescope Steel on September 5, 2024 and sell it today you would earn a total of 153.00 from holding Bluescope Steel or generate 7.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Bluescope Steel vs. Classic Minerals
Performance |
| Timeline |
| Bluescope Steel |
| Classic Minerals |
Bluescope Steel and Classic Minerals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bluescope Steel and Classic Minerals
The main advantage of trading using opposite Bluescope Steel and Classic Minerals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bluescope Steel position performs unexpectedly, Classic Minerals 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 Classic Minerals will offset losses from the drop in Classic Minerals' long position.| Bluescope Steel vs. Northern Star Resources | Bluescope Steel vs. Sandfire Resources NL | Bluescope Steel vs. Aneka Tambang Tbk |
| Classic Minerals vs. Alternative Investment Trust | Classic Minerals vs. Auctus Alternative Investments | Classic Minerals vs. Farm Pride Foods | Classic Minerals vs. Diversified United Investment |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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