Correlation Between Steel Dynamics and Aptech
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By analyzing existing cross correlation between Steel Dynamics and Aptech Limited, you can compare the effects of market volatilities on Steel Dynamics and Aptech 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 Aptech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Steel Dynamics and Aptech.
Diversification Opportunities for Steel Dynamics and Aptech
-0.86 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Steel and Aptech is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding Steel Dynamics and Aptech Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aptech Limited 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 Aptech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aptech Limited has no effect on the direction of Steel Dynamics i.e., Steel Dynamics and Aptech go up and down completely randomly.
Pair Corralation between Steel Dynamics and Aptech
Given the investment horizon of 90 days Steel Dynamics is expected to generate 0.5 times more return on investment than Aptech. However, Steel Dynamics is 2.0 times less risky than Aptech. It trades about 0.04 of its potential returns per unit of risk. Aptech Limited is currently generating about 0.01 per unit of risk. If you would invest 10,552 in Steel Dynamics on September 4, 2024 and sell it today you would earn a total of 3,929 from holding Steel Dynamics or generate 37.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 98.59% |
| Values | Daily Returns |
Steel Dynamics vs. Aptech Limited
Performance |
| Timeline |
| Steel Dynamics |
| Aptech Limited |
Steel Dynamics and Aptech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Steel Dynamics and Aptech
The main advantage of trading using opposite Steel Dynamics and Aptech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Steel Dynamics position performs unexpectedly, Aptech 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 Aptech will offset losses from the drop in Aptech'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 |
| Aptech vs. HMT Limited | Aptech vs. KIOCL Limited | Aptech vs. Spentex Industries Limited | Aptech vs. Punjab Sind Bank |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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