Correlation Between Baker Steel and Coor Service
Can any of the company-specific risk be diversified away by investing in both Baker Steel and Coor Service 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 Baker Steel and Coor Service into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Baker Steel Resources and Coor Service Management, you can compare the effects of market volatilities on Baker Steel and Coor Service 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 Baker Steel with a short position of Coor Service. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baker Steel and Coor Service.
Diversification Opportunities for Baker Steel and Coor Service
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Baker and Coor is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Baker Steel Resources and Coor Service Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coor Service Management and Baker 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 Baker Steel Resources are associated (or correlated) with Coor Service. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coor Service Management has no effect on the direction of Baker Steel i.e., Baker Steel and Coor Service go up and down completely randomly.
Pair Corralation between Baker Steel and Coor Service
Assuming the 90 days trading horizon Baker Steel Resources is expected to generate 0.98 times more return on investment than Coor Service. However, Baker Steel Resources is 1.02 times less risky than Coor Service. It trades about 0.09 of its potential returns per unit of risk. Coor Service Management is currently generating about -0.16 per unit of risk. If you would invest 5,150 in Baker Steel Resources on August 30, 2024 and sell it today you would earn a total of 600.00 from holding Baker Steel Resources or generate 11.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Baker Steel Resources vs. Coor Service Management
Performance |
| Timeline |
| Baker Steel Resources |
| Coor Service Management |
Baker Steel and Coor Service Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Baker Steel and Coor Service
The main advantage of trading using opposite Baker Steel and Coor Service positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Baker Steel position performs unexpectedly, Coor Service 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 Coor Service will offset losses from the drop in Coor Service's long position.| Baker Steel vs. One Media iP | Baker Steel vs. Associated British Foods | Baker Steel vs. Hollywood Bowl Group | Baker Steel vs. Liberty Media Corp |
| Coor Service vs. Check Point Software | Coor Service vs. Catena Media PLC | Coor Service vs. XLMedia PLC | Coor Service vs. Schweiter Technologies AG |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |