Correlation Between United States and AIB Acquisition
Can any of the company-specific risk be diversified away by investing in both United States and AIB Acquisition 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 United States and AIB Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between United States Steel and AIB Acquisition Corp, you can compare the effects of market volatilities on United States and AIB Acquisition 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 United States with a short position of AIB Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of United States and AIB Acquisition.
Diversification Opportunities for United States and AIB Acquisition
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between United and AIB is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding United States Steel and AIB Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AIB Acquisition Corp and United States 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 United States Steel are associated (or correlated) with AIB Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AIB Acquisition Corp has no effect on the direction of United States i.e., United States and AIB Acquisition go up and down completely randomly.
Pair Corralation between United States and AIB Acquisition
If you would invest 3,941 in United States Steel on August 30, 2024 and sell it today you would earn a total of 104.00 from holding United States Steel or generate 2.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 4.35% |
| Values | Daily Returns |
United States Steel vs. AIB Acquisition Corp
Performance |
| Timeline |
| United States Steel |
| AIB Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
United States and AIB Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United States and AIB Acquisition
The main advantage of trading using opposite United States and AIB Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United States position performs unexpectedly, AIB Acquisition 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 AIB Acquisition will offset losses from the drop in AIB Acquisition's long position.| United States vs. Nucor Corp | United States vs. Steel Dynamics | United States vs. ArcelorMittal SA ADR | United States vs. Gerdau SA ADR |
| AIB Acquisition vs. Ironveld Plc | AIB Acquisition vs. United States Steel | AIB Acquisition vs. ArcelorMittal SA ADR | AIB Acquisition vs. Universal Music Group |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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