Correlation Between ArcelorMittal and Caribbean Investment
Can any of the company-specific risk be diversified away by investing in both ArcelorMittal and Caribbean Investment 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 ArcelorMittal and Caribbean Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ArcelorMittal SA ADR and Caribbean Investment Holdings, you can compare the effects of market volatilities on ArcelorMittal and Caribbean Investment 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 ArcelorMittal with a short position of Caribbean Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of ArcelorMittal and Caribbean Investment.
Diversification Opportunities for ArcelorMittal and Caribbean Investment
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ArcelorMittal and Caribbean is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ArcelorMittal SA ADR and Caribbean Investment Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Caribbean Investment and ArcelorMittal 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 ArcelorMittal SA ADR are associated (or correlated) with Caribbean Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Caribbean Investment has no effect on the direction of ArcelorMittal i.e., ArcelorMittal and Caribbean Investment go up and down completely randomly.
Pair Corralation between ArcelorMittal and Caribbean Investment
If you would invest 55.00 in Caribbean Investment Holdings on September 23, 2024 and sell it today you would earn a total of 0.00 from holding Caribbean Investment Holdings or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 3.62% |
| Values | Daily Returns |
ArcelorMittal SA ADR vs. Caribbean Investment Holdings
Performance |
| Timeline |
| ArcelorMittal SA ADR |
| Caribbean Investment |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
ArcelorMittal and Caribbean Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ArcelorMittal and Caribbean Investment
The main advantage of trading using opposite ArcelorMittal and Caribbean Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ArcelorMittal position performs unexpectedly, Caribbean Investment 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 Caribbean Investment will offset losses from the drop in Caribbean Investment's long position.| ArcelorMittal vs. Wheaton Precious Metals | ArcelorMittal vs. Royal Gold | ArcelorMittal vs. Agnico Eagle Mines | ArcelorMittal vs. Sandstorm Gold Ltd |
| Caribbean Investment vs. United States Steel | Caribbean Investment vs. Insteel Industries | Caribbean Investment vs. ArcelorMittal SA ADR | Caribbean Investment vs. Grupo Simec SAB |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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