Correlation Between Steel Dynamics and Acces Industrie
Can any of the company-specific risk be diversified away by investing in both Steel Dynamics and Acces Industrie 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 Acces Industrie into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Steel Dynamics and Acces Industrie SA, you can compare the effects of market volatilities on Steel Dynamics and Acces Industrie 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 Acces Industrie. Check out your portfolio center. Please also check ongoing floating volatility patterns of Steel Dynamics and Acces Industrie.
Diversification Opportunities for Steel Dynamics and Acces Industrie
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Steel and Acces is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Steel Dynamics and Acces Industrie SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acces Industrie SA 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 Acces Industrie. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acces Industrie SA has no effect on the direction of Steel Dynamics i.e., Steel Dynamics and Acces Industrie go up and down completely randomly.
Pair Corralation between Steel Dynamics and Acces Industrie
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 | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Steel Dynamics vs. Acces Industrie SA
Performance |
| Timeline |
| Steel Dynamics |
| Acces Industrie SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Steel Dynamics and Acces Industrie Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Steel Dynamics and Acces Industrie
The main advantage of trading using opposite Steel Dynamics and Acces Industrie positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Steel Dynamics position performs unexpectedly, Acces Industrie 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 Acces Industrie will offset losses from the drop in Acces Industrie'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 |
| Acces Industrie vs. Gaztransport Technigaz SAS | Acces Industrie vs. Netmedia Group SA | Acces Industrie vs. Axway Software | Acces Industrie vs. Fiducial Office Solutions |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |