Correlation Between Steel Dynamics and Amundi Index
Can any of the company-specific risk be diversified away by investing in both Steel Dynamics and Amundi Index 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 Amundi Index into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Steel Dynamics and Amundi Index Solutions, you can compare the effects of market volatilities on Steel Dynamics and Amundi Index 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 Amundi Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of Steel Dynamics and Amundi Index.
Diversification Opportunities for Steel Dynamics and Amundi Index
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Steel and Amundi is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Steel Dynamics and Amundi Index Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi Index Solutions 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 Amundi Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amundi Index Solutions has no effect on the direction of Steel Dynamics i.e., Steel Dynamics and Amundi Index go up and down completely randomly.
Pair Corralation between Steel Dynamics and Amundi Index
If you would invest (100.00) in Amundi Index Solutions on September 12, 2024 and sell it today you would earn a total of 100.00 from holding Amundi Index Solutions or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Steel Dynamics vs. Amundi Index Solutions
Performance |
| Timeline |
| Steel Dynamics |
| Amundi Index Solutions |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Steel Dynamics and Amundi Index Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Steel Dynamics and Amundi Index
The main advantage of trading using opposite Steel Dynamics and Amundi Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Steel Dynamics position performs unexpectedly, Amundi Index 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 Amundi Index will offset losses from the drop in Amundi Index'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 |
| Amundi Index vs. Amundi Index Solutions | Amundi Index vs. Amundi Index Solutions | Amundi Index vs. Amundi MSCI World | Amundi Index vs. Amundi Index 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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