Correlation Between HUTCHISON TELECOMM and BlueScope Steel
Can any of the company-specific risk be diversified away by investing in both HUTCHISON TELECOMM and BlueScope Steel 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 HUTCHISON TELECOMM and BlueScope Steel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HUTCHISON TELECOMM and BlueScope Steel Limited, you can compare the effects of market volatilities on HUTCHISON TELECOMM and BlueScope Steel 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 HUTCHISON TELECOMM with a short position of BlueScope Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUTCHISON TELECOMM and BlueScope Steel.
Diversification Opportunities for HUTCHISON TELECOMM and BlueScope Steel
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between HUTCHISON and BlueScope is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding HUTCHISON TELECOMM and BlueScope Steel Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BlueScope Steel and HUTCHISON TELECOMM 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 HUTCHISON TELECOMM are associated (or correlated) with BlueScope Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BlueScope Steel has no effect on the direction of HUTCHISON TELECOMM i.e., HUTCHISON TELECOMM and BlueScope Steel go up and down completely randomly.
Pair Corralation between HUTCHISON TELECOMM and BlueScope Steel
Assuming the 90 days trading horizon HUTCHISON TELECOMM is expected to under-perform the BlueScope Steel. In addition to that, HUTCHISON TELECOMM is 2.95 times more volatile than BlueScope Steel Limited. It trades about 0.0 of its total potential returns per unit of risk. BlueScope Steel Limited is currently generating about 0.03 per unit of volatility. If you would invest 1,056 in BlueScope Steel Limited on November 9, 2024 and sell it today you would earn a total of 204.00 from holding BlueScope Steel Limited or generate 19.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HUTCHISON TELECOMM vs. BlueScope Steel Limited
Performance |
| Timeline |
| HUTCHISON TELECOMM |
| BlueScope Steel |
HUTCHISON TELECOMM and BlueScope Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUTCHISON TELECOMM and BlueScope Steel
The main advantage of trading using opposite HUTCHISON TELECOMM and BlueScope Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUTCHISON TELECOMM position performs unexpectedly, BlueScope Steel 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 BlueScope Steel will offset losses from the drop in BlueScope Steel's long position.| HUTCHISON TELECOMM vs. BORR DRILLING NEW | HUTCHISON TELECOMM vs. Boyd Gaming | HUTCHISON TELECOMM vs. GAMESTOP | HUTCHISON TELECOMM vs. Scientific Games |
| BlueScope Steel vs. X FAB Silicon Foundries | BlueScope Steel vs. Nanjing Panda Electronics | BlueScope Steel vs. Arrow Electronics | BlueScope Steel vs. Vishay Intertechnology |
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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