Correlation Between Steel Dynamics and Linx SA
Can any of the company-specific risk be diversified away by investing in both Steel Dynamics and Linx SA 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 Linx SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Steel Dynamics and Linx SA, you can compare the effects of market volatilities on Steel Dynamics and Linx SA 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 Linx SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Steel Dynamics and Linx SA.
Diversification Opportunities for Steel Dynamics and Linx SA
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Steel and Linx is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Steel Dynamics and Linx SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Linx 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 Linx SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Linx SA has no effect on the direction of Steel Dynamics i.e., Steel Dynamics and Linx SA go up and down completely randomly.
Pair Corralation between Steel Dynamics and Linx SA
If you would invest 0.00 in Linx SA on September 12, 2024 and sell it today you would earn a total of 0.00 from holding Linx SA or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Steel Dynamics vs. Linx SA
Performance |
| Timeline |
| Steel Dynamics |
| Linx SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Steel Dynamics and Linx SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Steel Dynamics and Linx SA
The main advantage of trading using opposite Steel Dynamics and Linx SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Steel Dynamics position performs unexpectedly, Linx SA 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 Linx SA will offset losses from the drop in Linx SA'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 |
| Linx SA vs. MAHLE Metal Leve | Linx SA vs. Palantir Technologies | Linx SA vs. Bio Techne | Linx SA vs. Agilent Technologies |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |