Correlation Between Steel Dynamics and BankInvest Lange
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By analyzing existing cross correlation between Steel Dynamics and BankInvest Lange Danske, you can compare the effects of market volatilities on Steel Dynamics and BankInvest Lange 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 BankInvest Lange. Check out your portfolio center. Please also check ongoing floating volatility patterns of Steel Dynamics and BankInvest Lange.
Diversification Opportunities for Steel Dynamics and BankInvest Lange
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Steel and BankInvest is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Steel Dynamics and BankInvest Lange Danske in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BankInvest Lange Danske 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 BankInvest Lange. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BankInvest Lange Danske has no effect on the direction of Steel Dynamics i.e., Steel Dynamics and BankInvest Lange go up and down completely randomly.
Pair Corralation between Steel Dynamics and BankInvest Lange
Given the investment horizon of 90 days Steel Dynamics is expected to under-perform the BankInvest Lange. In addition to that, Steel Dynamics is 7.62 times more volatile than BankInvest Lange Danske. It trades about -0.26 of its total potential returns per unit of risk. BankInvest Lange Danske is currently generating about 0.27 per unit of volatility. If you would invest 8,900 in BankInvest Lange Danske on September 13, 2024 and sell it today you would earn a total of 96.00 from holding BankInvest Lange Danske or generate 1.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Steel Dynamics vs. BankInvest Lange Danske
Performance |
| Timeline |
| Steel Dynamics |
| BankInvest Lange Danske |
Steel Dynamics and BankInvest Lange Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Steel Dynamics and BankInvest Lange
The main advantage of trading using opposite Steel Dynamics and BankInvest Lange positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Steel Dynamics position performs unexpectedly, BankInvest Lange 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 BankInvest Lange will offset losses from the drop in BankInvest Lange'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 |
| BankInvest Lange vs. BankInvest Emerging | BankInvest Lange vs. BankInvest Emerging | BankInvest Lange vs. BankInvest Hjt | BankInvest Lange vs. BankInvest Danske |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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