Correlation Between Steel Dynamics and 26442CAZ7
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By analyzing existing cross correlation between Steel Dynamics and DUKE ENERGY CAROLINAS, you can compare the effects of market volatilities on Steel Dynamics and 26442CAZ7 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 26442CAZ7. Check out your portfolio center. Please also check ongoing floating volatility patterns of Steel Dynamics and 26442CAZ7.
Diversification Opportunities for Steel Dynamics and 26442CAZ7
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Steel and 26442CAZ7 is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Steel Dynamics and DUKE ENERGY CAROLINAS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DUKE ENERGY CAROLINAS 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 26442CAZ7. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DUKE ENERGY CAROLINAS has no effect on the direction of Steel Dynamics i.e., Steel Dynamics and 26442CAZ7 go up and down completely randomly.
Pair Corralation between Steel Dynamics and 26442CAZ7
Given the investment horizon of 90 days Steel Dynamics is expected to generate 1.78 times more return on investment than 26442CAZ7. However, Steel Dynamics is 1.78 times more volatile than DUKE ENERGY CAROLINAS. It trades about 0.16 of its potential returns per unit of risk. DUKE ENERGY CAROLINAS is currently generating about 0.03 per unit of risk. If you would invest 11,354 in Steel Dynamics on August 31, 2024 and sell it today you would earn a total of 3,029 from holding Steel Dynamics or generate 26.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 88.89% |
| Values | Daily Returns |
Steel Dynamics vs. DUKE ENERGY CAROLINAS
Performance |
| Timeline |
| Steel Dynamics |
| DUKE ENERGY CAROLINAS |
Steel Dynamics and 26442CAZ7 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Steel Dynamics and 26442CAZ7
The main advantage of trading using opposite Steel Dynamics and 26442CAZ7 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Steel Dynamics position performs unexpectedly, 26442CAZ7 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 26442CAZ7 will offset losses from the drop in 26442CAZ7'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 |
| 26442CAZ7 vs. Corporacion America Airports | 26442CAZ7 vs. Life Time Group | 26442CAZ7 vs. United Parks Resorts | 26442CAZ7 vs. Willamette Valley Vineyards |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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