Correlation Between TMST Old and Aperam PK
Can any of the company-specific risk be diversified away by investing in both TMST Old and Aperam PK at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining TMST Old and Aperam PK into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TMST Old and Aperam PK, you can compare the effects of market volatilities on TMST Old and Aperam PK 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 TMST Old with a short position of Aperam PK. Check out your portfolio center. Please also check ongoing floating volatility patterns of TMST Old and Aperam PK.
Diversification Opportunities for TMST Old and Aperam PK
Modest diversification
The 3 months correlation between TMST and Aperam is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding TMST Old and Aperam PK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aperam PK and TMST Old 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 TMST Old are associated (or correlated) with Aperam PK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aperam PK has no effect on the direction of TMST Old i.e., TMST Old and Aperam PK go up and down completely randomly.
Pair Corralation between TMST Old and Aperam PK
If you would invest 2,900 in Aperam PK on August 24, 2024 and sell it today you would earn a total of 66.00 from holding Aperam PK or generate 2.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
TMST Old vs. Aperam PK
Performance |
| Timeline |
| TMST Old |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Aperam PK |
TMST Old and Aperam PK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TMST Old and Aperam PK
The main advantage of trading using opposite TMST Old and Aperam PK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TMST Old position performs unexpectedly, Aperam PK 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 Aperam PK will offset losses from the drop in Aperam PK's long position.| TMST Old vs. Reliance Steel Aluminum | TMST Old vs. Universal Stainless Alloy | TMST Old vs. Outokumpu Oyj ADR | TMST Old vs. Olympic Steel |
| Aperam PK vs. ArcelorMittal SA ADR | Aperam PK vs. Gerdau SA ADR | Aperam PK vs. POSCO Holdings | Aperam PK vs. HUMANA 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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