Correlation Between United States and BTS Group
Can any of the company-specific risk be diversified away by investing in both United States and BTS Group 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 BTS Group 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 BTS Group Holdings, you can compare the effects of market volatilities on United States and BTS Group 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 BTS Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of United States and BTS Group.
Diversification Opportunities for United States and BTS Group
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between United and BTS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding United States Steel and BTS Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BTS Group Holdings 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 BTS Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BTS Group Holdings has no effect on the direction of United States i.e., United States and BTS Group go up and down completely randomly.
Pair Corralation between United States and BTS Group
If you would invest 3,529 in United States Steel on August 29, 2024 and sell it today you would earn a total of 434.00 from holding United States Steel or generate 12.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 97.67% |
| Values | Daily Returns |
United States Steel vs. BTS Group Holdings
Performance |
| Timeline |
| United States Steel |
| BTS Group Holdings |
United States and BTS Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United States and BTS Group
The main advantage of trading using opposite United States and BTS Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United States position performs unexpectedly, BTS Group 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 BTS Group will offset losses from the drop in BTS Group'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 |
| BTS Group vs. Altria Group | BTS Group vs. Merit Medical Systems | BTS Group vs. Acco Brands | BTS Group vs. Keurig Dr Pepper |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Global Correlations Find global opportunities by holding instruments from different markets |