Correlation Between Steel Dynamics and Y Optics
Can any of the company-specific risk be diversified away by investing in both Steel Dynamics and Y Optics 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 Y Optics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Steel Dynamics and Y Optics Manufacture Co, you can compare the effects of market volatilities on Steel Dynamics and Y Optics 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 Y Optics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Steel Dynamics and Y Optics.
Diversification Opportunities for Steel Dynamics and Y Optics
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Steel and 066430 is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Steel Dynamics and Y Optics Manufacture Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Y Optics Manufacture 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 Y Optics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Y Optics Manufacture has no effect on the direction of Steel Dynamics i.e., Steel Dynamics and Y Optics go up and down completely randomly.
Pair Corralation between Steel Dynamics and Y Optics
Given the investment horizon of 90 days Steel Dynamics is expected to generate 0.71 times more return on investment than Y Optics. However, Steel Dynamics is 1.4 times less risky than Y Optics. It trades about 0.03 of its potential returns per unit of risk. Y Optics Manufacture Co is currently generating about -0.06 per unit of risk. If you would invest 12,043 in Steel Dynamics on September 12, 2024 and sell it today you would earn a total of 1,393 from holding Steel Dynamics or generate 11.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 96.37% |
| Values | Daily Returns |
Steel Dynamics vs. Y Optics Manufacture Co
Performance |
| Timeline |
| Steel Dynamics |
| Y Optics Manufacture |
Steel Dynamics and Y Optics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Steel Dynamics and Y Optics
The main advantage of trading using opposite Steel Dynamics and Y Optics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Steel Dynamics position performs unexpectedly, Y Optics 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 Y Optics will offset losses from the drop in Y Optics' 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 |
| Y Optics vs. Automobile Pc | Y Optics vs. Jeil Steel Mfg | Y Optics vs. Daelim Trading Co | Y Optics vs. Hankuk Steel Wire |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |