Correlation Between Schnitzer Steel and National Grid
Can any of the company-specific risk be diversified away by investing in both Schnitzer Steel and National Grid 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 National Grid 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 National Grid Plc, you can compare the effects of market volatilities on Schnitzer Steel and National Grid 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 National Grid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Schnitzer Steel and National Grid.
Diversification Opportunities for Schnitzer Steel and National Grid
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Schnitzer and National is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Schnitzer Steel Industries and National Grid Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Grid Plc 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 National Grid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Grid Plc has no effect on the direction of Schnitzer Steel i.e., Schnitzer Steel and National Grid go up and down completely randomly.
Pair Corralation between Schnitzer Steel and National Grid
If you would invest (100.00) in National Grid Plc on October 9, 2024 and sell it today you would earn a total of 100.00 from holding National Grid Plc 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. National Grid Plc
Performance |
| Timeline |
| Schnitzer Steel Indu |
| National Grid Plc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Schnitzer Steel and National Grid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Schnitzer Steel and National Grid
The main advantage of trading using opposite Schnitzer Steel and National Grid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Schnitzer Steel position performs unexpectedly, National Grid 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 National Grid will offset losses from the drop in National Grid's long position.| Schnitzer Steel vs. Apple Inc | Schnitzer Steel vs. Apple Inc | Schnitzer Steel vs. Apple Inc | Schnitzer Steel vs. Apple Inc |
| National Grid vs. CITY OFFICE REIT | National Grid vs. Cleanaway Waste Management | National Grid vs. Treasury Wine Estates | National Grid vs. Marie Brizard Wine |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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