Correlation Between SCHNITZER STEEL and Acerinox
Can any of the company-specific risk be diversified away by investing in both SCHNITZER STEEL and Acerinox 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 SCHNITZER STEEL and Acerinox into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SCHNITZER STEEL INDUSTRIES and Acerinox SA ADR, you can compare the effects of market volatilities on SCHNITZER STEEL and Acerinox 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 SCHNITZER STEEL with a short position of Acerinox. Check out your portfolio center. Please also check ongoing floating volatility patterns of SCHNITZER STEEL and Acerinox.
Diversification Opportunities for SCHNITZER STEEL and Acerinox
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SCHNITZER and Acerinox is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding SCHNITZER STEEL INDUSTRIES and Acerinox SA ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acerinox SA ADR and SCHNITZER STEEL 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 SCHNITZER STEEL INDUSTRIES are associated (or correlated) with Acerinox. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acerinox SA ADR has no effect on the direction of SCHNITZER STEEL i.e., SCHNITZER STEEL and Acerinox go up and down completely randomly.
Pair Corralation between SCHNITZER STEEL and Acerinox
If you would invest 3,277 in SCHNITZER STEEL INDUSTRIES on August 27, 2024 and sell it today you would earn a total of 0.00 from holding SCHNITZER STEEL INDUSTRIES or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.53% |
| Values | Daily Returns |
SCHNITZER STEEL INDUSTRIES vs. Acerinox SA ADR
Performance |
| Timeline |
| SCHNITZER STEEL INDU |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Acerinox SA ADR |
SCHNITZER STEEL and Acerinox Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SCHNITZER STEEL and Acerinox
The main advantage of trading using opposite SCHNITZER STEEL and Acerinox positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SCHNITZER STEEL position performs unexpectedly, Acerinox 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 Acerinox will offset losses from the drop in Acerinox's long position.| SCHNITZER STEEL vs. Olympic Steel | SCHNITZER STEEL vs. Universal Stainless Alloy | SCHNITZER STEEL vs. Outokumpu Oyj ADR | SCHNITZER STEEL vs. Usinas Siderurgicas de |
| Acerinox vs. Olympic Steel | Acerinox vs. Mesabi Trust | Acerinox vs. Universal Stainless Alloy | Acerinox vs. POSCO 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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