Correlation Between United States and IFCCN
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By analyzing existing cross correlation between United States Steel and IFCCN 5459 22 SEP 32, you can compare the effects of market volatilities on United States and IFCCN 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 IFCCN. Check out your portfolio center. Please also check ongoing floating volatility patterns of United States and IFCCN.
Diversification Opportunities for United States and IFCCN
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between United and IFCCN is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding United States Steel and IFCCN 5459 22 SEP 32 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IFCCN 5459 22 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 IFCCN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IFCCN 5459 22 has no effect on the direction of United States i.e., United States and IFCCN go up and down completely randomly.
Pair Corralation between United States and IFCCN
Taking into account the 90-day investment horizon United States Steel is expected to generate 3.69 times more return on investment than IFCCN. However, United States is 3.69 times more volatile than IFCCN 5459 22 SEP 32. It trades about 0.09 of its potential returns per unit of risk. IFCCN 5459 22 SEP 32 is currently generating about -0.08 per unit of risk. If you would invest 3,858 in United States Steel on September 2, 2024 and sell it today you would earn a total of 219.00 from holding United States Steel or generate 5.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 38.1% |
| Values | Daily Returns |
United States Steel vs. IFCCN 5459 22 SEP 32
Performance |
| Timeline |
| United States Steel |
| IFCCN 5459 22 |
United States and IFCCN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United States and IFCCN
The main advantage of trading using opposite United States and IFCCN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United States position performs unexpectedly, IFCCN 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 IFCCN will offset losses from the drop in IFCCN's long position.| United States vs. Fortitude Gold Corp | United States vs. New Gold | United States vs. Galiano Gold | United States vs. GoldMining |
| IFCCN vs. United States Steel | IFCCN vs. Allegheny Technologies Incorporated | IFCCN vs. Pure Cycle | IFCCN vs. PGE Corp |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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