Correlation Between Moog and Arcelormittal
Can any of the company-specific risk be diversified away by investing in both Moog and Arcelormittal 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 Moog and Arcelormittal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Moog Inc and Arcelormittal, you can compare the effects of market volatilities on Moog and Arcelormittal 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 Moog with a short position of Arcelormittal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Moog and Arcelormittal.
Diversification Opportunities for Moog and Arcelormittal
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Moog and Arcelormittal is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Moog Inc and Arcelormittal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arcelormittal and Moog 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 Moog Inc are associated (or correlated) with Arcelormittal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arcelormittal has no effect on the direction of Moog i.e., Moog and Arcelormittal go up and down completely randomly.
Pair Corralation between Moog and Arcelormittal
Assuming the 90 days horizon Moog Inc is expected to generate 0.87 times more return on investment than Arcelormittal. However, Moog Inc is 1.15 times less risky than Arcelormittal. It trades about 0.11 of its potential returns per unit of risk. Arcelormittal is currently generating about 0.0 per unit of risk. If you would invest 8,378 in Moog Inc on August 30, 2024 and sell it today you would earn a total of 13,620 from holding Moog Inc or generate 162.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 22.22% |
| Values | Daily Returns |
Moog Inc vs. Arcelormittal
Performance |
| Timeline |
| Moog Inc |
| Arcelormittal |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Moog and Arcelormittal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Moog and Arcelormittal
The main advantage of trading using opposite Moog and Arcelormittal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Moog position performs unexpectedly, Arcelormittal 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 Arcelormittal will offset losses from the drop in Arcelormittal's long position.| Moog vs. Deere Company | Moog vs. Columbus McKinnon | Moog vs. Hyster Yale Materials Handling | Moog vs. Manitowoc |
| Arcelormittal vs. Affiliated Managers Group | Arcelormittal vs. Maiden Holdings North | Arcelormittal vs. Credit Enhanced Corts | Arcelormittal vs. Affiliated Managers Group, |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |