Correlation Between LanzaTech Global and Steelcase
Can any of the company-specific risk be diversified away by investing in both LanzaTech Global and Steelcase 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 LanzaTech Global and Steelcase into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LanzaTech Global and Steelcase, you can compare the effects of market volatilities on LanzaTech Global and Steelcase 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 LanzaTech Global with a short position of Steelcase. Check out your portfolio center. Please also check ongoing floating volatility patterns of LanzaTech Global and Steelcase.
Diversification Opportunities for LanzaTech Global and Steelcase
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between LanzaTech and Steelcase is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding LanzaTech Global and Steelcase in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Steelcase and LanzaTech Global 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 LanzaTech Global are associated (or correlated) with Steelcase. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Steelcase has no effect on the direction of LanzaTech Global i.e., LanzaTech Global and Steelcase go up and down completely randomly.
Pair Corralation between LanzaTech Global and Steelcase
Given the investment horizon of 90 days LanzaTech Global is expected to under-perform the Steelcase. In addition to that, LanzaTech Global is 3.05 times more volatile than Steelcase. It trades about -0.44 of its total potential returns per unit of risk. Steelcase is currently generating about 0.14 per unit of volatility. If you would invest 1,259 in Steelcase on August 27, 2024 and sell it today you would earn a total of 68.00 from holding Steelcase or generate 5.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
LanzaTech Global vs. Steelcase
Performance |
| Timeline |
| LanzaTech Global |
| Steelcase |
LanzaTech Global and Steelcase Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LanzaTech Global and Steelcase
The main advantage of trading using opposite LanzaTech Global and Steelcase positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LanzaTech Global position performs unexpectedly, Steelcase 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 Steelcase will offset losses from the drop in Steelcase's long position.| LanzaTech Global vs. Casella Waste Systems | LanzaTech Global vs. Montrose Environmental Grp | LanzaTech Global vs. Clean Harbors | LanzaTech Global vs. Gfl Environmental 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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