Correlation Between Worthington Steel and I 80
Can any of the company-specific risk be diversified away by investing in both Worthington Steel and I 80 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 Worthington Steel and I 80 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Worthington Steel and I 80 Gold Corp, you can compare the effects of market volatilities on Worthington Steel and I 80 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 Worthington Steel with a short position of I 80. Check out your portfolio center. Please also check ongoing floating volatility patterns of Worthington Steel and I 80.
Diversification Opportunities for Worthington Steel and I 80
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Worthington and IAUX is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Worthington Steel and I 80 Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on I 80 Gold and Worthington Steel 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 Worthington Steel are associated (or correlated) with I 80. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of I 80 Gold has no effect on the direction of Worthington Steel i.e., Worthington Steel and I 80 go up and down completely randomly.
Pair Corralation between Worthington Steel and I 80
Allowing for the 90-day total investment horizon Worthington Steel is expected to generate 0.73 times more return on investment than I 80. However, Worthington Steel is 1.38 times less risky than I 80. It trades about 0.08 of its potential returns per unit of risk. I 80 Gold Corp is currently generating about -0.04 per unit of risk. If you would invest 2,461 in Worthington Steel on August 31, 2024 and sell it today you would earn a total of 2,023 from holding Worthington Steel or generate 82.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 68.18% |
| Values | Daily Returns |
Worthington Steel vs. I 80 Gold Corp
Performance |
| Timeline |
| Worthington Steel |
| I 80 Gold |
Worthington Steel and I 80 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Worthington Steel and I 80
The main advantage of trading using opposite Worthington Steel and I 80 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Worthington Steel position performs unexpectedly, I 80 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 I 80 will offset losses from the drop in I 80's long position.| Worthington Steel vs. Ambev SA ADR | Worthington Steel vs. SNDL Inc | Worthington Steel vs. Freedom Holding Corp | Worthington Steel vs. Kite Realty Group |
| I 80 vs. K92 Mining | I 80 vs. Wesdome Gold Mines | I 80 vs. Fortuna Silver Mines | I 80 vs. Sandstorm Gold Ltd |
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.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |