Correlation Between Steel Dynamics and Mold Tek
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By analyzing existing cross correlation between Steel Dynamics and Mold Tek Packaging Limited, you can compare the effects of market volatilities on Steel Dynamics and Mold Tek 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 Mold Tek. Check out your portfolio center. Please also check ongoing floating volatility patterns of Steel Dynamics and Mold Tek.
Diversification Opportunities for Steel Dynamics and Mold Tek
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Steel and Mold is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Steel Dynamics and Mold Tek Packaging Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mold Tek Packaging 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 Mold Tek. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mold Tek Packaging has no effect on the direction of Steel Dynamics i.e., Steel Dynamics and Mold Tek go up and down completely randomly.
Pair Corralation between Steel Dynamics and Mold Tek
Given the investment horizon of 90 days Steel Dynamics is expected to generate 1.23 times more return on investment than Mold Tek. However, Steel Dynamics is 1.23 times more volatile than Mold Tek Packaging Limited. It trades about 0.05 of its potential returns per unit of risk. Mold Tek Packaging Limited is currently generating about -0.04 per unit of risk. If you would invest 9,878 in Steel Dynamics on September 12, 2024 and sell it today you would earn a total of 3,651 from holding Steel Dynamics or generate 36.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 97.59% |
| Values | Daily Returns |
Steel Dynamics vs. Mold Tek Packaging Limited
Performance |
| Timeline |
| Steel Dynamics |
| Mold Tek Packaging |
Steel Dynamics and Mold Tek Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Steel Dynamics and Mold Tek
The main advantage of trading using opposite Steel Dynamics and Mold Tek positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Steel Dynamics position performs unexpectedly, Mold Tek 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 Mold Tek will offset losses from the drop in Mold Tek'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 |
| Mold Tek vs. Kingfa Science Technology | Mold Tek vs. LLOYDS METALS AND | Mold Tek vs. LT Technology Services | Mold Tek vs. Reliance Industrial Infrastructure |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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