Correlation Between Steel Dynamics and PACIFIC
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By analyzing existing cross correlation between Steel Dynamics and PACIFIC GAS AND, you can compare the effects of market volatilities on Steel Dynamics and PACIFIC 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 PACIFIC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Steel Dynamics and PACIFIC.
Diversification Opportunities for Steel Dynamics and PACIFIC
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Steel and PACIFIC is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Steel Dynamics and PACIFIC GAS AND in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PACIFIC GAS AND 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 PACIFIC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PACIFIC GAS AND has no effect on the direction of Steel Dynamics i.e., Steel Dynamics and PACIFIC go up and down completely randomly.
Pair Corralation between Steel Dynamics and PACIFIC
Given the investment horizon of 90 days Steel Dynamics is expected to generate 3.27 times more return on investment than PACIFIC. However, Steel Dynamics is 3.27 times more volatile than PACIFIC GAS AND. It trades about 0.05 of its potential returns per unit of risk. PACIFIC GAS AND is currently generating about 0.02 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 Together |
| Strength | Very Weak |
| Accuracy | 99.2% |
| Values | Daily Returns |
Steel Dynamics vs. PACIFIC GAS AND
Performance |
| Timeline |
| Steel Dynamics |
| PACIFIC GAS AND |
Steel Dynamics and PACIFIC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Steel Dynamics and PACIFIC
The main advantage of trading using opposite Steel Dynamics and PACIFIC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Steel Dynamics position performs unexpectedly, PACIFIC 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 PACIFIC will offset losses from the drop in PACIFIC'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 |
| PACIFIC vs. Kite Realty Group | PACIFIC vs. Electronic Arts | PACIFIC vs. GameStop Corp | PACIFIC vs. Chewy Inc |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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