Correlation Between Steel Dynamics and TAISEM
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By analyzing existing cross correlation between Steel Dynamics and TAISEM 45 22 APR 52, you can compare the effects of market volatilities on Steel Dynamics and TAISEM 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 TAISEM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Steel Dynamics and TAISEM.
Diversification Opportunities for Steel Dynamics and TAISEM
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Steel and TAISEM is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Steel Dynamics and TAISEM 45 22 APR 52 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TAISEM 45 22 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 TAISEM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TAISEM 45 22 has no effect on the direction of Steel Dynamics i.e., Steel Dynamics and TAISEM go up and down completely randomly.
Pair Corralation between Steel Dynamics and TAISEM
Given the investment horizon of 90 days Steel Dynamics is expected to generate 1.52 times more return on investment than TAISEM. However, Steel Dynamics is 1.52 times more volatile than TAISEM 45 22 APR 52. It trades about 0.04 of its potential returns per unit of risk. TAISEM 45 22 APR 52 is currently generating about 0.0 per unit of risk. If you would invest 10,552 in Steel Dynamics on September 4, 2024 and sell it today you would earn a total of 3,929 from holding Steel Dynamics or generate 37.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 67.88% |
| Values | Daily Returns |
Steel Dynamics vs. TAISEM 45 22 APR 52
Performance |
| Timeline |
| Steel Dynamics |
| TAISEM 45 22 |
Steel Dynamics and TAISEM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Steel Dynamics and TAISEM
The main advantage of trading using opposite Steel Dynamics and TAISEM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Steel Dynamics position performs unexpectedly, TAISEM 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 TAISEM will offset losses from the drop in TAISEM'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 |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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