Correlation Between SHBASS and Algoma Steel
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By analyzing existing cross correlation between SHBASS 365 10 JUN 25 and Algoma Steel Group, you can compare the effects of market volatilities on SHBASS and Algoma Steel 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 SHBASS with a short position of Algoma Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of SHBASS and Algoma Steel.
Diversification Opportunities for SHBASS and Algoma Steel
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SHBASS and Algoma is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding SHBASS 365 10 JUN 25 and Algoma Steel Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Algoma Steel Group and SHBASS 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 SHBASS 365 10 JUN 25 are associated (or correlated) with Algoma Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Algoma Steel Group has no effect on the direction of SHBASS i.e., SHBASS and Algoma Steel go up and down completely randomly.
Pair Corralation between SHBASS and Algoma Steel
Assuming the 90 days trading horizon SHBASS 365 10 JUN 25 is expected to under-perform the Algoma Steel. But the bond apears to be less risky and, when comparing its historical volatility, SHBASS 365 10 JUN 25 is 4.09 times less risky than Algoma Steel. The bond trades about -0.02 of its potential returns per unit of risk. The Algoma Steel Group is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 763.00 in Algoma Steel Group on September 3, 2024 and sell it today you would earn a total of 314.00 from holding Algoma Steel Group or generate 41.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 39.73% |
| Values | Daily Returns |
SHBASS 365 10 JUN 25 vs. Algoma Steel Group
Performance |
| Timeline |
| SHBASS 365 10 |
| Algoma Steel Group |
SHBASS and Algoma Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SHBASS and Algoma Steel
The main advantage of trading using opposite SHBASS and Algoma Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SHBASS position performs unexpectedly, Algoma Steel 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 Algoma Steel will offset losses from the drop in Algoma Steel's long position.| SHBASS vs. Algoma Steel Group | SHBASS vs. Sanyo Special Steel | SHBASS vs. Grupo Simec SAB | SHBASS vs. Boston Omaha Corp |
| Algoma Steel vs. Friedman Industries | Algoma Steel vs. ArcelorMittal SA | Algoma Steel vs. Aperam PK | Algoma Steel vs. Acerinox SA ADR |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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