Correlation Between Steel Dynamics and 14913R2Z9
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By analyzing existing cross correlation between Steel Dynamics and CAT 365 12 AUG 25, you can compare the effects of market volatilities on Steel Dynamics and 14913R2Z9 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 14913R2Z9. Check out your portfolio center. Please also check ongoing floating volatility patterns of Steel Dynamics and 14913R2Z9.
Diversification Opportunities for Steel Dynamics and 14913R2Z9
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Steel and 14913R2Z9 is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Steel Dynamics and CAT 365 12 AUG 25 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CAT 365 12 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 14913R2Z9. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CAT 365 12 has no effect on the direction of Steel Dynamics i.e., Steel Dynamics and 14913R2Z9 go up and down completely randomly.
Pair Corralation between Steel Dynamics and 14913R2Z9
Given the investment horizon of 90 days Steel Dynamics is expected to generate 10.87 times more return on investment than 14913R2Z9. However, Steel Dynamics is 10.87 times more volatile than CAT 365 12 AUG 25. It trades about 0.06 of its potential returns per unit of risk. CAT 365 12 AUG 25 is currently generating about 0.01 per unit of risk. If you would invest 9,885 in Steel Dynamics on September 4, 2024 and sell it today you would earn a total of 4,596 from holding Steel Dynamics or generate 46.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.91% |
| Values | Daily Returns |
Steel Dynamics vs. CAT 365 12 AUG 25
Performance |
| Timeline |
| Steel Dynamics |
| CAT 365 12 |
Steel Dynamics and 14913R2Z9 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Steel Dynamics and 14913R2Z9
The main advantage of trading using opposite Steel Dynamics and 14913R2Z9 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Steel Dynamics position performs unexpectedly, 14913R2Z9 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 14913R2Z9 will offset losses from the drop in 14913R2Z9'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 |
| 14913R2Z9 vs. Uber Technologies | 14913R2Z9 vs. WiMi Hologram Cloud | 14913R2Z9 vs. Radcom | 14913R2Z9 vs. Where Food Comes |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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