Correlation Between Gerdau SA and SSR Mining
Can any of the company-specific risk be diversified away by investing in both Gerdau SA 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 Gerdau SA and SSR Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gerdau SA ADR and SSR Mining, you can compare the effects of market volatilities on Gerdau SA 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 Gerdau SA with a short position of SSR Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gerdau SA and SSR Mining.
Diversification Opportunities for Gerdau SA and SSR Mining
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Gerdau and SSR is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Gerdau SA ADR and SSR Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SSR Mining and Gerdau SA 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 Gerdau SA ADR 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 Gerdau SA i.e., Gerdau SA and SSR Mining go up and down completely randomly.
Pair Corralation between Gerdau SA and SSR Mining
Considering the 90-day investment horizon Gerdau SA is expected to generate 4.98 times less return on investment than SSR Mining. But when comparing it to its historical volatility, Gerdau SA ADR is 1.71 times less risky than SSR Mining. It trades about 0.1 of its potential returns per unit of risk. SSR Mining is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 749.00 in SSR Mining on November 9, 2024 and sell it today you would earn a total of 163.00 from holding SSR Mining or generate 21.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gerdau SA ADR vs. SSR Mining
Performance |
| Timeline |
| Gerdau SA ADR |
| SSR Mining |
Gerdau SA and SSR Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gerdau SA and SSR Mining
The main advantage of trading using opposite Gerdau SA and SSR Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gerdau SA 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.| Gerdau SA vs. Usinas Siderurgicas de | Gerdau SA vs. Ternium SA ADR | Gerdau SA vs. ArcelorMittal SA ADR | Gerdau SA vs. POSCO Holdings |
| 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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