Correlation Between SAG Holdings and Schnitzer Steel
Can any of the company-specific risk be diversified away by investing in both SAG Holdings and Schnitzer 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 SAG Holdings and Schnitzer Steel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SAG Holdings Limited and Schnitzer Steel Industries, you can compare the effects of market volatilities on SAG Holdings and Schnitzer 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 SAG Holdings with a short position of Schnitzer Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of SAG Holdings and Schnitzer Steel.
Diversification Opportunities for SAG Holdings and Schnitzer Steel
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SAG and Schnitzer is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding SAG Holdings Limited and Schnitzer Steel Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Schnitzer Steel Indu and SAG Holdings 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 SAG Holdings Limited are associated (or correlated) with Schnitzer Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Schnitzer Steel Indu has no effect on the direction of SAG Holdings i.e., SAG Holdings and Schnitzer Steel go up and down completely randomly.
Pair Corralation between SAG Holdings and Schnitzer Steel
Considering the 90-day investment horizon SAG Holdings Limited is expected to under-perform the Schnitzer Steel. In addition to that, SAG Holdings is 1.15 times more volatile than Schnitzer Steel Industries. It trades about -0.21 of its total potential returns per unit of risk. Schnitzer Steel Industries is currently generating about 0.15 per unit of volatility. If you would invest 1,684 in Schnitzer Steel Industries on August 31, 2024 and sell it today you would earn a total of 287.00 from holding Schnitzer Steel Industries or generate 17.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SAG Holdings Limited vs. Schnitzer Steel Industries
Performance |
| Timeline |
| SAG Holdings Limited |
| Schnitzer Steel Indu |
SAG Holdings and Schnitzer Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SAG Holdings and Schnitzer Steel
The main advantage of trading using opposite SAG Holdings and Schnitzer Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SAG Holdings position performs unexpectedly, Schnitzer 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 Schnitzer Steel will offset losses from the drop in Schnitzer Steel's long position.| SAG Holdings vs. MagnaChip Semiconductor | SAG Holdings vs. Ecovyst | SAG Holdings vs. Flexible Solutions International | SAG Holdings vs. Vishay Intertechnology |
| Schnitzer Steel vs. Ambev SA ADR | Schnitzer Steel vs. Thai Beverage PCL | Schnitzer Steel vs. Boston Beer | Schnitzer Steel vs. Diageo PLC ADR |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |