Correlation Between Steel Dynamics and Zhejiang Mtcn
Specify exactly 2 symbols:
By analyzing existing cross correlation between Steel Dynamics and Zhejiang Mtcn Technology, you can compare the effects of market volatilities on Steel Dynamics and Zhejiang Mtcn 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 Zhejiang Mtcn. Check out your portfolio center. Please also check ongoing floating volatility patterns of Steel Dynamics and Zhejiang Mtcn.
Diversification Opportunities for Steel Dynamics and Zhejiang Mtcn
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Steel and Zhejiang is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Steel Dynamics and Zhejiang Mtcn Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Mtcn Technology 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 Zhejiang Mtcn. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Mtcn Technology has no effect on the direction of Steel Dynamics i.e., Steel Dynamics and Zhejiang Mtcn go up and down completely randomly.
Pair Corralation between Steel Dynamics and Zhejiang Mtcn
Given the investment horizon of 90 days Steel Dynamics is expected to generate 1.02 times more return on investment than Zhejiang Mtcn. However, Steel Dynamics is 1.02 times more volatile than Zhejiang Mtcn Technology. It trades about 0.13 of its potential returns per unit of risk. Zhejiang Mtcn Technology is currently generating about 0.07 per unit of risk. If you would invest 13,358 in Steel Dynamics on September 4, 2024 and sell it today you would earn a total of 1,123 from holding Steel Dynamics or generate 8.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Steel Dynamics vs. Zhejiang Mtcn Technology
Performance |
| Timeline |
| Steel Dynamics |
| Zhejiang Mtcn Technology |
Steel Dynamics and Zhejiang Mtcn Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Steel Dynamics and Zhejiang Mtcn
The main advantage of trading using opposite Steel Dynamics and Zhejiang Mtcn positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Steel Dynamics position performs unexpectedly, Zhejiang Mtcn 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 Zhejiang Mtcn will offset losses from the drop in Zhejiang Mtcn's long position.| Steel Dynamics vs. Cleveland Cliffs | Steel Dynamics vs. United States Steel | Steel Dynamics vs. ArcelorMittal SA ADR | Steel Dynamics vs. Reliance Steel Aluminum |
| Zhejiang Mtcn vs. Kingsignal Technology Co | Zhejiang Mtcn vs. Zhejiang Kingland Pipeline | Zhejiang Mtcn vs. Hubei Xingfa Chemicals | Zhejiang Mtcn vs. ROPEOK Technology Group |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |