Correlation Between Six Flags and Reliance Steel
Can any of the company-specific risk be diversified away by investing in both Six Flags and Reliance Steel 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 Six Flags and Reliance Steel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Six Flags Entertainment and Reliance Steel Aluminum, you can compare the effects of market volatilities on Six Flags and Reliance Steel 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 Six Flags with a short position of Reliance Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Six Flags and Reliance Steel.
Diversification Opportunities for Six Flags and Reliance Steel
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Six and Reliance is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Six Flags Entertainment and Reliance Steel Aluminum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Reliance Steel Aluminum and Six Flags 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 Six Flags Entertainment are associated (or correlated) with Reliance Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Reliance Steel Aluminum has no effect on the direction of Six Flags i.e., Six Flags and Reliance Steel go up and down completely randomly.
Pair Corralation between Six Flags and Reliance Steel
Considering the 90-day investment horizon Six Flags Entertainment is expected to under-perform the Reliance Steel. In addition to that, Six Flags is 1.84 times more volatile than Reliance Steel Aluminum. It trades about -0.01 of its total potential returns per unit of risk. Reliance Steel Aluminum is currently generating about 0.06 per unit of volatility. If you would invest 20,471 in Reliance Steel Aluminum on January 24, 2024 and sell it today you would earn a total of 11,483 from holding Reliance Steel Aluminum or generate 56.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Six Flags Entertainment vs. Reliance Steel Aluminum
Performance |
| Timeline |
| Six Flags Entertainment |
| Reliance Steel Aluminum |
Six Flags and Reliance Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Six Flags and Reliance Steel
The main advantage of trading using opposite Six Flags and Reliance Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Six Flags position performs unexpectedly, Reliance Steel 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 Reliance Steel will offset losses from the drop in Reliance Steel's long position.| Six Flags vs. JAKKS Pacific | Six Flags vs. OneSpaWorld Holdings | Six Flags vs. Clarus Corp | Six Flags vs. Cedar Fair LP |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |