Correlation Between CHRISTUS and Steel Dynamics
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By analyzing existing cross correlation between CHRISTUS HEALTH 4341 and Steel Dynamics, you can compare the effects of market volatilities on CHRISTUS and Steel Dynamics 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 CHRISTUS with a short position of Steel Dynamics. Check out your portfolio center. Please also check ongoing floating volatility patterns of CHRISTUS and Steel Dynamics.
Diversification Opportunities for CHRISTUS and Steel Dynamics
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between CHRISTUS and Steel is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding CHRISTUS HEALTH 4341 and Steel Dynamics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Steel Dynamics and CHRISTUS 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 CHRISTUS HEALTH 4341 are associated (or correlated) with Steel Dynamics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Steel Dynamics has no effect on the direction of CHRISTUS i.e., CHRISTUS and Steel Dynamics go up and down completely randomly.
Pair Corralation between CHRISTUS and Steel Dynamics
Assuming the 90 days trading horizon CHRISTUS HEALTH 4341 is expected to under-perform the Steel Dynamics. But the bond apears to be less risky and, when comparing its historical volatility, CHRISTUS HEALTH 4341 is 2.0 times less risky than Steel Dynamics. The bond trades about -0.18 of its potential returns per unit of risk. The Steel Dynamics is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 12,469 in Steel Dynamics on November 22, 2024 and sell it today you would earn a total of 1,207 from holding Steel Dynamics or generate 9.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 71.43% |
| Values | Daily Returns |
CHRISTUS HEALTH 4341 vs. Steel Dynamics
Performance |
| Timeline |
| CHRISTUS HEALTH 4341 |
| Steel Dynamics |
CHRISTUS and Steel Dynamics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CHRISTUS and Steel Dynamics
The main advantage of trading using opposite CHRISTUS and Steel Dynamics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CHRISTUS position performs unexpectedly, Steel Dynamics 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 Steel Dynamics will offset losses from the drop in Steel Dynamics' long position.| CHRISTUS vs. AEP TEX INC | CHRISTUS vs. AICNRA 575 15 JUN 33 | CHRISTUS vs. ITV PLC ADR | CHRISTUS vs. Westinghouse Air Brake |
| 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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