Correlation Between Steel Dynamics and IShares MSCI
Specify exactly 2 symbols:
By analyzing existing cross correlation between Steel Dynamics and iShares MSCI ACWI, you can compare the effects of market volatilities on Steel Dynamics and IShares MSCI 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 IShares MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Steel Dynamics and IShares MSCI.
Diversification Opportunities for Steel Dynamics and IShares MSCI
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Steel and IShares is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Steel Dynamics and iShares MSCI ACWI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares MSCI ACWI 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 IShares MSCI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares MSCI ACWI has no effect on the direction of Steel Dynamics i.e., Steel Dynamics and IShares MSCI go up and down completely randomly.
Pair Corralation between Steel Dynamics and IShares MSCI
Given the investment horizon of 90 days Steel Dynamics is expected to generate 1.29 times less return on investment than IShares MSCI. In addition to that, Steel Dynamics is 2.53 times more volatile than iShares MSCI ACWI. It trades about 0.04 of its total potential returns per unit of risk. iShares MSCI ACWI is currently generating about 0.13 per unit of volatility. If you would invest 2,195,000 in iShares MSCI ACWI on September 4, 2024 and sell it today you would earn a total of 1,118,000 from holding iShares MSCI ACWI or generate 50.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 77.98% |
| Values | Daily Returns |
Steel Dynamics vs. iShares MSCI ACWI
Performance |
| Timeline |
| Steel Dynamics |
| iShares MSCI ACWI |
Steel Dynamics and IShares MSCI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Steel Dynamics and IShares MSCI
The main advantage of trading using opposite Steel Dynamics and IShares MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Steel Dynamics position performs unexpectedly, IShares MSCI 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 IShares MSCI will offset losses from the drop in IShares MSCI'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 |
| IShares MSCI vs. Brainsway | IShares MSCI vs. Mivne Real Estate | IShares MSCI vs. Photomyne | IShares MSCI vs. Israel Land Development |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |