Correlation Between Cleveland Cliffs and SSR Mining
Can any of the company-specific risk be diversified away by investing in both Cleveland Cliffs and SSR Mining 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 Cleveland Cliffs and SSR Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cleveland Cliffs and SSR Mining, you can compare the effects of market volatilities on Cleveland Cliffs and SSR Mining 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 SSR Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cleveland Cliffs and SSR Mining.
Diversification Opportunities for Cleveland Cliffs and SSR Mining
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cleveland and SSR is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Cleveland Cliffs and SSR Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SSR Mining 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 SSR Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SSR Mining has no effect on the direction of Cleveland Cliffs i.e., Cleveland Cliffs and SSR Mining go up and down completely randomly.
Pair Corralation between Cleveland Cliffs and SSR Mining
Considering the 90-day investment horizon Cleveland Cliffs is expected to under-perform the SSR Mining. In addition to that, Cleveland Cliffs is 1.06 times more volatile than SSR Mining. It trades about -0.08 of its total potential returns per unit of risk. SSR Mining is currently generating about 0.14 per unit of volatility. If you would invest 614.00 in SSR Mining on November 1, 2024 and sell it today you would earn a total of 202.00 from holding SSR Mining or generate 32.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cleveland Cliffs vs. SSR Mining
Performance |
| Timeline |
| Cleveland Cliffs |
| SSR Mining |
Cleveland Cliffs and SSR Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cleveland Cliffs and SSR Mining
The main advantage of trading using opposite Cleveland Cliffs and SSR Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cleveland Cliffs position performs unexpectedly, SSR Mining 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 SSR Mining will offset losses from the drop in SSR Mining's long position.| Cleveland Cliffs vs. Nucor Corp | Cleveland Cliffs vs. Steel Dynamics | Cleveland Cliffs vs. ArcelorMittal SA ADR | Cleveland Cliffs vs. Gerdau SA ADR |
| SSR Mining vs. Centerra Gold | SSR Mining vs. Gold Fields Ltd | SSR Mining vs. Eldorado Gold Corp | SSR Mining vs. Osisko Gold Ro |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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