Correlation Between STEEL DYNAMICS and ALBIS LEASING
Can any of the company-specific risk be diversified away by investing in both STEEL DYNAMICS and ALBIS LEASING 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 ALBIS LEASING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between STEEL DYNAMICS and ALBIS LEASING AG, you can compare the effects of market volatilities on STEEL DYNAMICS and ALBIS LEASING 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 ALBIS LEASING. Check out your portfolio center. Please also check ongoing floating volatility patterns of STEEL DYNAMICS and ALBIS LEASING.
Diversification Opportunities for STEEL DYNAMICS and ALBIS LEASING
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between STEEL and ALBIS is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding STEEL DYNAMICS and ALBIS LEASING AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ALBIS LEASING AG 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 ALBIS LEASING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ALBIS LEASING AG has no effect on the direction of STEEL DYNAMICS i.e., STEEL DYNAMICS and ALBIS LEASING go up and down completely randomly.
Pair Corralation between STEEL DYNAMICS and ALBIS LEASING
Assuming the 90 days trading horizon STEEL DYNAMICS is expected to generate 10.16 times more return on investment than ALBIS LEASING. However, STEEL DYNAMICS is 10.16 times more volatile than ALBIS LEASING AG. It trades about 0.25 of its potential returns per unit of risk. ALBIS LEASING AG is currently generating about 0.31 per unit of risk. If you would invest 10,964 in STEEL DYNAMICS on November 4, 2024 and sell it today you would earn a total of 1,326 from holding STEEL DYNAMICS or generate 12.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
STEEL DYNAMICS vs. ALBIS LEASING AG
Performance |
| Timeline |
| STEEL DYNAMICS |
| ALBIS LEASING AG |
STEEL DYNAMICS and ALBIS LEASING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with STEEL DYNAMICS and ALBIS LEASING
The main advantage of trading using opposite STEEL DYNAMICS and ALBIS LEASING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if STEEL DYNAMICS position performs unexpectedly, ALBIS LEASING 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 ALBIS LEASING will offset losses from the drop in ALBIS LEASING's long position.| STEEL DYNAMICS vs. East Africa Metals | STEEL DYNAMICS vs. DICKS Sporting Goods | STEEL DYNAMICS vs. ANTA SPORTS PRODUCT | STEEL DYNAMICS vs. JD SPORTS FASH |
| ALBIS LEASING vs. Motorcar Parts of | ALBIS LEASING vs. AIR PRODCHEMICALS | ALBIS LEASING vs. GRUPO CARSO A1 | ALBIS LEASING vs. STMICROELECTRONICS |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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