Correlation Between Steel Dynamics and 26442UAG9
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By analyzing existing cross correlation between Steel Dynamics and DUKE ENERGY PROGRESS, you can compare the effects of market volatilities on Steel Dynamics and 26442UAG9 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 26442UAG9. Check out your portfolio center. Please also check ongoing floating volatility patterns of Steel Dynamics and 26442UAG9.
Diversification Opportunities for Steel Dynamics and 26442UAG9
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Steel and 26442UAG9 is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Steel Dynamics and DUKE ENERGY PROGRESS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DUKE ENERGY PROGRESS 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 26442UAG9. 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 PROGRESS has no effect on the direction of Steel Dynamics i.e., Steel Dynamics and 26442UAG9 go up and down completely randomly.
Pair Corralation between Steel Dynamics and 26442UAG9
Given the investment horizon of 90 days Steel Dynamics is expected to generate 7.5 times more return on investment than 26442UAG9. However, Steel Dynamics is 7.5 times more volatile than DUKE ENERGY PROGRESS. It trades about 0.12 of its potential returns per unit of risk. DUKE ENERGY PROGRESS is currently generating about -0.18 per unit of risk. If you would invest 12,608 in Steel Dynamics on August 30, 2024 and sell it today you would earn a total of 1,775 from holding Steel Dynamics or generate 14.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
Steel Dynamics vs. DUKE ENERGY PROGRESS
Performance |
| Timeline |
| Steel Dynamics |
| DUKE ENERGY PROGRESS |
Steel Dynamics and 26442UAG9 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Steel Dynamics and 26442UAG9
The main advantage of trading using opposite Steel Dynamics and 26442UAG9 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Steel Dynamics position performs unexpectedly, 26442UAG9 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 26442UAG9 will offset losses from the drop in 26442UAG9'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 |
| 26442UAG9 vs. Ituran Location and | 26442UAG9 vs. Kandi Technologies Group | 26442UAG9 vs. Montauk Renewables | 26442UAG9 vs. Sphere Entertainment Co |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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