Correlation Between SCHNITZER STEEL and Companhia Siderurgica
Can any of the company-specific risk be diversified away by investing in both SCHNITZER STEEL and Companhia Siderurgica 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 Companhia Siderurgica 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 Companhia Siderurgica Nacional, you can compare the effects of market volatilities on SCHNITZER STEEL and Companhia Siderurgica 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 Companhia Siderurgica. Check out your portfolio center. Please also check ongoing floating volatility patterns of SCHNITZER STEEL and Companhia Siderurgica.
Diversification Opportunities for SCHNITZER STEEL and Companhia Siderurgica
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SCHNITZER and Companhia is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SCHNITZER STEEL INDUSTRIES and Companhia Siderurgica Nacional in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Companhia Siderurgica 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 Companhia Siderurgica. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Companhia Siderurgica has no effect on the direction of SCHNITZER STEEL i.e., SCHNITZER STEEL and Companhia Siderurgica go up and down completely randomly.
Pair Corralation between SCHNITZER STEEL and Companhia Siderurgica
If you would invest (100.00) in SCHNITZER STEEL INDUSTRIES on November 9, 2024 and sell it today you would earn a total of 100.00 from holding SCHNITZER STEEL INDUSTRIES or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
SCHNITZER STEEL INDUSTRIES vs. Companhia Siderurgica Nacional
Performance |
| Timeline |
| SCHNITZER STEEL INDU |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Companhia Siderurgica |
SCHNITZER STEEL and Companhia Siderurgica Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SCHNITZER STEEL and Companhia Siderurgica
The main advantage of trading using opposite SCHNITZER STEEL and Companhia Siderurgica positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SCHNITZER STEEL position performs unexpectedly, Companhia Siderurgica 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 Companhia Siderurgica will offset losses from the drop in Companhia Siderurgica's long position.| SCHNITZER STEEL vs. Olympic Steel | SCHNITZER STEEL vs. Outokumpu Oyj ADR | SCHNITZER STEEL vs. Usinas Siderurgicas de | SCHNITZER STEEL vs. Reliance Steel Aluminum |
| Companhia Siderurgica vs. Ternium SA ADR | Companhia Siderurgica vs. ArcelorMittal SA ADR | Companhia Siderurgica vs. Commercial Metals | Companhia Siderurgica vs. Outokumpu Oyj 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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