Correlation Between Usinas Siderurgicas and Klöckner
Can any of the company-specific risk be diversified away by investing in both Usinas Siderurgicas and Klöckner 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 Usinas Siderurgicas and Klöckner into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Usinas Siderurgicas de and Klckner Co SE, you can compare the effects of market volatilities on Usinas Siderurgicas and Klöckner 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 Usinas Siderurgicas with a short position of Klöckner. Check out your portfolio center. Please also check ongoing floating volatility patterns of Usinas Siderurgicas and Klöckner.
Diversification Opportunities for Usinas Siderurgicas and Klöckner
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Usinas and Klöckner is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Usinas Siderurgicas de and Klckner Co SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Klckner Co SE and Usinas Siderurgicas 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 Usinas Siderurgicas de are associated (or correlated) with Klöckner. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Klckner Co SE has no effect on the direction of Usinas Siderurgicas i.e., Usinas Siderurgicas and Klöckner go up and down completely randomly.
Pair Corralation between Usinas Siderurgicas and Klöckner
Assuming the 90 days horizon Usinas Siderurgicas de is expected to under-perform the Klöckner. In addition to that, Usinas Siderurgicas is 3.98 times more volatile than Klckner Co SE. It trades about -0.02 of its total potential returns per unit of risk. Klckner Co SE is currently generating about -0.04 per unit of volatility. If you would invest 547.00 in Klckner Co SE on August 29, 2024 and sell it today you would lose (12.00) from holding Klckner Co SE or give up 2.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Usinas Siderurgicas de vs. Klckner Co SE
Performance |
| Timeline |
| Usinas Siderurgicas |
| Klckner Co SE |
Usinas Siderurgicas and Klöckner Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Usinas Siderurgicas and Klöckner
The main advantage of trading using opposite Usinas Siderurgicas and Klöckner positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Usinas Siderurgicas position performs unexpectedly, Klöckner 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 Klöckner will offset losses from the drop in Klöckner's long position.| Usinas Siderurgicas vs. Companhia Siderurgica Nacional | Usinas Siderurgicas vs. Olympic Steel | Usinas Siderurgicas vs. Universal Stainless Alloy | Usinas Siderurgicas vs. POSCO Holdings |
| Klöckner vs. Companhia Siderurgica Nacional | Klöckner vs. Olympic Steel | Klöckner vs. Universal Stainless Alloy | Klöckner vs. Usinas Siderurgicas de |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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