Correlation Between United States and SMUCKER
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By analyzing existing cross correlation between United States Steel and SMUCKER J M, you can compare the effects of market volatilities on United States and SMUCKER 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 SMUCKER. Check out your portfolio center. Please also check ongoing floating volatility patterns of United States and SMUCKER.
Diversification Opportunities for United States and SMUCKER
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between United and SMUCKER is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding United States Steel and SMUCKER J M in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SMUCKER J M 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 SMUCKER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SMUCKER J M has no effect on the direction of United States i.e., United States and SMUCKER go up and down completely randomly.
Pair Corralation between United States and SMUCKER
Taking into account the 90-day investment horizon United States Steel is expected to generate 14.56 times more return on investment than SMUCKER. However, United States is 14.56 times more volatile than SMUCKER J M. It trades about 0.16 of its potential returns per unit of risk. SMUCKER J M is currently generating about -0.14 per unit of risk. If you would invest 3,489 in United States Steel on September 3, 2024 and sell it today you would earn a total of 588.00 from holding United States Steel or generate 16.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
United States Steel vs. SMUCKER J M
Performance |
| Timeline |
| United States Steel |
| SMUCKER J M |
United States and SMUCKER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United States and SMUCKER
The main advantage of trading using opposite United States and SMUCKER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United States position performs unexpectedly, SMUCKER 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 SMUCKER will offset losses from the drop in SMUCKER'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 |
| SMUCKER vs. Kaltura | SMUCKER vs. United States Steel | SMUCKER vs. FARO Technologies | SMUCKER vs. Uber Technologies |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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