Correlation Between Steel Partners and Global Techs
Can any of the company-specific risk be diversified away by investing in both Steel Partners and Global Techs 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 Partners and Global Techs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Steel Partners Holdings and Global Techs, you can compare the effects of market volatilities on Steel Partners and Global Techs 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 Partners with a short position of Global Techs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Steel Partners and Global Techs.
Diversification Opportunities for Steel Partners and Global Techs
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Steel and Global is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Steel Partners Holdings and Global Techs in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Techs and Steel Partners 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 Partners Holdings are associated (or correlated) with Global Techs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Techs has no effect on the direction of Steel Partners i.e., Steel Partners and Global Techs go up and down completely randomly.
Pair Corralation between Steel Partners and Global Techs
If you would invest 4,400 in Steel Partners Holdings on September 1, 2024 and sell it today you would earn a total of 100.00 from holding Steel Partners Holdings or generate 2.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.22% |
| Values | Daily Returns |
Steel Partners Holdings vs. Global Techs
Performance |
| Timeline |
| Steel Partners Holdings |
| Global Techs |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Steel Partners and Global Techs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Steel Partners and Global Techs
The main advantage of trading using opposite Steel Partners and Global Techs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Steel Partners position performs unexpectedly, Global Techs 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 Global Techs will offset losses from the drop in Global Techs' long position.| Steel Partners vs. Compass Diversified | Steel Partners vs. Compass Diversified | Steel Partners vs. Compass Diversified | Steel Partners vs. Tejon Ranch Co |
| Global Techs vs. 1847 Holdings LLC | Global Techs vs. Alliance Recovery | Global Techs vs. Agro Capital Management | Global Techs vs. Ayala |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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