Correlation Between Cleveland Cliffs and Minera Frisco
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By analyzing existing cross correlation between Cleveland Cliffs and Minera Frisco SAB, you can compare the effects of market volatilities on Cleveland Cliffs and Minera Frisco 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 Cleveland Cliffs with a short position of Minera Frisco. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cleveland Cliffs and Minera Frisco.
Diversification Opportunities for Cleveland Cliffs and Minera Frisco
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Cleveland and Minera is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Cleveland Cliffs and Minera Frisco SAB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Minera Frisco SAB and Cleveland Cliffs 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 Cleveland Cliffs are associated (or correlated) with Minera Frisco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Minera Frisco SAB has no effect on the direction of Cleveland Cliffs i.e., Cleveland Cliffs and Minera Frisco go up and down completely randomly.
Pair Corralation between Cleveland Cliffs and Minera Frisco
Assuming the 90 days trading horizon Cleveland Cliffs is expected to generate 1.74 times more return on investment than Minera Frisco. However, Cleveland Cliffs is 1.74 times more volatile than Minera Frisco SAB. It trades about -0.01 of its potential returns per unit of risk. Minera Frisco SAB is currently generating about -0.05 per unit of risk. If you would invest 26,650 in Cleveland Cliffs on August 25, 2024 and sell it today you would lose (1,150) from holding Cleveland Cliffs or give up 4.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cleveland Cliffs vs. Minera Frisco SAB
Performance |
| Timeline |
| Cleveland Cliffs |
| Minera Frisco SAB |
Cleveland Cliffs and Minera Frisco Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cleveland Cliffs and Minera Frisco
The main advantage of trading using opposite Cleveland Cliffs and Minera Frisco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cleveland Cliffs position performs unexpectedly, Minera Frisco 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 Minera Frisco will offset losses from the drop in Minera Frisco's long position.| Cleveland Cliffs vs. Rio Tinto Group | Cleveland Cliffs vs. Vale SA | Cleveland Cliffs vs. Glencore plc | Cleveland Cliffs vs. Minera Frisco SAB |
| Minera Frisco vs. Genworth Financial | Minera Frisco vs. McEwen Mining | Minera Frisco vs. Prudential Financial | Minera Frisco vs. United Airlines Holdings |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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