Correlation Between SCHNITZER STEEL and Usinas Siderurgicas
Can any of the company-specific risk be diversified away by investing in both SCHNITZER STEEL and Usinas Siderurgicas 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 Usinas Siderurgicas 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 Usinas Siderurgicas de, you can compare the effects of market volatilities on SCHNITZER STEEL and Usinas Siderurgicas 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 Usinas Siderurgicas. Check out your portfolio center. Please also check ongoing floating volatility patterns of SCHNITZER STEEL and Usinas Siderurgicas.
Diversification Opportunities for SCHNITZER STEEL and Usinas Siderurgicas
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SCHNITZER and Usinas is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding SCHNITZER STEEL INDUSTRIES and Usinas Siderurgicas de in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Usinas Siderurgicas 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 Usinas Siderurgicas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Usinas Siderurgicas has no effect on the direction of SCHNITZER STEEL i.e., SCHNITZER STEEL and Usinas Siderurgicas go up and down completely randomly.
Pair Corralation between SCHNITZER STEEL and Usinas Siderurgicas
If you would invest 91.00 in Usinas Siderurgicas de on November 3, 2024 and sell it today you would earn a total of 11.00 from holding Usinas Siderurgicas de or generate 12.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 5.0% |
| Values | Daily Returns |
SCHNITZER STEEL INDUSTRIES vs. Usinas Siderurgicas de
Performance |
| Timeline |
| SCHNITZER STEEL INDU |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Usinas Siderurgicas |
SCHNITZER STEEL and Usinas Siderurgicas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SCHNITZER STEEL and Usinas Siderurgicas
The main advantage of trading using opposite SCHNITZER STEEL and Usinas Siderurgicas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SCHNITZER STEEL position performs unexpectedly, Usinas Siderurgicas 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 Usinas Siderurgicas will offset losses from the drop in Usinas Siderurgicas' 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 |
| Usinas Siderurgicas vs. Olympic Steel | Usinas Siderurgicas vs. Mesabi Trust | Usinas Siderurgicas vs. Outokumpu Oyj ADR | Usinas Siderurgicas 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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