Correlation Between Steel Dynamics and Suzhou UIGreen
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By analyzing existing cross correlation between Steel Dynamics and Suzhou UIGreen Micro, you can compare the effects of market volatilities on Steel Dynamics and Suzhou UIGreen 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 Suzhou UIGreen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Steel Dynamics and Suzhou UIGreen.
Diversification Opportunities for Steel Dynamics and Suzhou UIGreen
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Steel and Suzhou is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Steel Dynamics and Suzhou UIGreen Micro in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzhou UIGreen Micro 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 Suzhou UIGreen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suzhou UIGreen Micro has no effect on the direction of Steel Dynamics i.e., Steel Dynamics and Suzhou UIGreen go up and down completely randomly.
Pair Corralation between Steel Dynamics and Suzhou UIGreen
Given the investment horizon of 90 days Steel Dynamics is expected to under-perform the Suzhou UIGreen. But the stock apears to be less risky and, when comparing its historical volatility, Steel Dynamics is 2.32 times less risky than Suzhou UIGreen. The stock trades about -0.26 of its potential returns per unit of risk. The Suzhou UIGreen Micro is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest 3,940 in Suzhou UIGreen Micro on September 13, 2024 and sell it today you would lose (199.00) from holding Suzhou UIGreen Micro or give up 5.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Steel Dynamics vs. Suzhou UIGreen Micro
Performance |
| Timeline |
| Steel Dynamics |
| Suzhou UIGreen Micro |
Steel Dynamics and Suzhou UIGreen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Steel Dynamics and Suzhou UIGreen
The main advantage of trading using opposite Steel Dynamics and Suzhou UIGreen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Steel Dynamics position performs unexpectedly, Suzhou UIGreen 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 Suzhou UIGreen will offset losses from the drop in Suzhou UIGreen'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 |
| Suzhou UIGreen vs. Heren Health Co | Suzhou UIGreen vs. Vontron Technology Co | Suzhou UIGreen vs. Everjoy Health Group | Suzhou UIGreen vs. Kingsignal Technology Co |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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