Correlation Between United States and LOEWS
Specify exactly 2 symbols:
By analyzing existing cross correlation between United States Steel and LOEWS P 4125, you can compare the effects of market volatilities on United States and LOEWS 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 LOEWS. Check out your portfolio center. Please also check ongoing floating volatility patterns of United States and LOEWS.
Diversification Opportunities for United States and LOEWS
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between United and LOEWS is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding United States Steel and LOEWS P 4125 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LOEWS P 4125 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 LOEWS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LOEWS P 4125 has no effect on the direction of United States i.e., United States and LOEWS go up and down completely randomly.
Pair Corralation between United States and LOEWS
Taking into account the 90-day investment horizon United States Steel is expected to generate 2.47 times more return on investment than LOEWS. However, United States is 2.47 times more volatile than LOEWS P 4125. It trades about 0.05 of its potential returns per unit of risk. LOEWS P 4125 is currently generating about -0.13 per unit of risk. 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 Against |
| Strength | Insignificant |
| Accuracy | 86.36% |
| Values | Daily Returns |
United States Steel vs. LOEWS P 4125
Performance |
| Timeline |
| United States Steel |
| LOEWS P 4125 |
United States and LOEWS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United States and LOEWS
The main advantage of trading using opposite United States and LOEWS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United States position performs unexpectedly, LOEWS 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 LOEWS will offset losses from the drop in LOEWS'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 |
| LOEWS vs. Algoma Steel Group | LOEWS vs. Tianjin Capital Environmental | LOEWS vs. United States Steel | LOEWS vs. Kandi Technologies 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |