Correlation Between STEEL DYNAMICS and Pandora AS
Can any of the company-specific risk be diversified away by investing in both STEEL DYNAMICS and Pandora AS 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 STEEL DYNAMICS and Pandora AS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between STEEL DYNAMICS and Pandora AS, you can compare the effects of market volatilities on STEEL DYNAMICS and Pandora AS 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 STEEL DYNAMICS with a short position of Pandora AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of STEEL DYNAMICS and Pandora AS.
Diversification Opportunities for STEEL DYNAMICS and Pandora AS
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between STEEL and Pandora is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding STEEL DYNAMICS and Pandora AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pandora AS and STEEL DYNAMICS 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 STEEL DYNAMICS are associated (or correlated) with Pandora AS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pandora AS has no effect on the direction of STEEL DYNAMICS i.e., STEEL DYNAMICS and Pandora AS go up and down completely randomly.
Pair Corralation between STEEL DYNAMICS and Pandora AS
Assuming the 90 days trading horizon STEEL DYNAMICS is expected to under-perform the Pandora AS. In addition to that, STEEL DYNAMICS is 1.74 times more volatile than Pandora AS. It trades about -0.21 of its total potential returns per unit of risk. Pandora AS is currently generating about 0.25 per unit of volatility. If you would invest 16,885 in Pandora AS on October 13, 2024 and sell it today you would earn a total of 740.00 from holding Pandora AS or generate 4.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 94.44% |
| Values | Daily Returns |
STEEL DYNAMICS vs. Pandora AS
Performance |
| Timeline |
| STEEL DYNAMICS |
| Pandora AS |
STEEL DYNAMICS and Pandora AS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with STEEL DYNAMICS and Pandora AS
The main advantage of trading using opposite STEEL DYNAMICS and Pandora AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if STEEL DYNAMICS position performs unexpectedly, Pandora AS 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 Pandora AS will offset losses from the drop in Pandora AS's long position.| STEEL DYNAMICS vs. VULCAN MATERIALS | STEEL DYNAMICS vs. Goodyear Tire Rubber | STEEL DYNAMICS vs. Materialise NV | STEEL DYNAMICS vs. Vulcan Materials |
| Pandora AS vs. CALTAGIRONE EDITORE | Pandora AS vs. STEEL DYNAMICS | Pandora AS vs. COSMOSTEEL HLDGS | Pandora AS vs. Sch Environnement SA |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Stocks Directory Find actively traded stocks across global markets | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |