Correlation Between Steel Dynamics and Psagot Index
Specify exactly 2 symbols:
By analyzing existing cross correlation between Steel Dynamics and Psagot Index Funds, you can compare the effects of market volatilities on Steel Dynamics and Psagot 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 Psagot Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of Steel Dynamics and Psagot Index.
Diversification Opportunities for Steel Dynamics and Psagot Index
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Steel and Psagot is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Steel Dynamics and Psagot Index Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Psagot Index Funds 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 Psagot Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Psagot Index Funds has no effect on the direction of Steel Dynamics i.e., Steel Dynamics and Psagot Index go up and down completely randomly.
Pair Corralation between Steel Dynamics and Psagot Index
Given the investment horizon of 90 days Steel Dynamics is expected to generate 6.09 times more return on investment than Psagot Index. However, Steel Dynamics is 6.09 times more volatile than Psagot Index Funds. It trades about 0.11 of its potential returns per unit of risk. Psagot Index Funds is currently generating about -0.13 per unit of risk. If you would invest 13,358 in Steel Dynamics on September 5, 2024 and sell it today you would earn a total of 962.00 from holding Steel Dynamics or generate 7.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 81.82% |
| Values | Daily Returns |
Steel Dynamics vs. Psagot Index Funds
Performance |
| Timeline |
| Steel Dynamics |
| Psagot Index Funds |
Steel Dynamics and Psagot Index Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Steel Dynamics and Psagot Index
The main advantage of trading using opposite Steel Dynamics and Psagot Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Steel Dynamics position performs unexpectedly, Psagot 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 Psagot Index will offset losses from the drop in Psagot 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 |
| Psagot Index vs. Psagot Index Funds | Psagot Index vs. Psagot Index Funds | Psagot Index vs. Psagot Index Funds | Psagot Index vs. Psagot Index Funds |
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.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |