ARCELORMITTAL Correlations

03938LAS3   99.25  3.53  3.43%   
The correlation of ARCELORMITTAL is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as ARCELORMITTAL moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if ARCELORMITTAL LUXEMBOURG 675 moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.

Good diversification

The correlation between ARCELORMITTAL LUXEMBOURG 675 and NYA is -0.11 (i.e., Good diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding ARCELORMITTAL LUXEMBOURG 675 and NYA in the same portfolio, assuming nothing else is changed.
Check out World Market Map to better understand how to build diversified portfolios, which includes a position in ARCELORMITTAL LUXEMBOURG 675. Also, note that the market value of any corporate bond could be tightly coupled with the direction of predictive economic indicators such as signals in nation.
  
The ability to find closely correlated positions to ARCELORMITTAL could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace ARCELORMITTAL when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back ARCELORMITTAL - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling ARCELORMITTAL LUXEMBOURG 675 to buy it.

Related Correlations Analysis

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Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.
High positive correlations   
OCEASTRL
METASTRL
VMETA
LWAYYMM
VSTRL
METAOCEA
  
High negative correlations   
90331HPL100108WAF7
V00108WAF7
META00108WAF7
VNCTY
VLWAY
OCEA00108WAF7

Risk-Adjusted Indicators

There is a big difference between ARCELORMITTAL Bond performing well and ARCELORMITTAL Corporate Bond doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze ARCELORMITTAL's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.
Mean DeviationJensen AlphaSortino RatioTreynor RatioSemi DeviationExpected ShortfallPotential UpsideValue @RiskMaximum Drawdown
00108WAF7  1.03  0.21  0.11 (1.45) 0.86 
 2.77 
 5.78 
90331HPL1  0.11 (0.03) 0.00 (0.61) 0.00 
 0.20 
 0.62 
STRL  1.99  0.30  0.18  0.22  1.87 
 4.07 
 22.04 
YMM  2.25  0.29  0.10  0.55  2.22 
 5.47 
 15.84 
LWAY  3.88  0.66  0.17  0.81  3.45 
 10.47 
 35.62 
NCTY  5.41 (0.22) 0.00  0.03  7.19 
 13.66 
 30.29 
OCEA  11.75  3.67  0.48  0.97  6.41 
 28.92 
 208.65 
META  1.71  0.49  0.34  0.44  1.12 
 3.34 
 24.74 
TOON  3.09  0.69  0.17 (0.38) 2.51 
 7.30 
 30.86 
V  0.65  0.02 (0.01) 0.11  0.83 
 1.27 
 4.97 

Be your own money manager

Our tools can tell you how much better you can do entering a position in ARCELORMITTAL without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

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Already Invested in ARCELORMITTAL LUXEMBOURG 675?

The danger of trading ARCELORMITTAL LUXEMBOURG 675 is mainly related to its market volatility and Corporate Bond specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of ARCELORMITTAL is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than ARCELORMITTAL. The Sharpe ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile ARCELORMITTAL LUXEMB is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.
Check out World Market Map to better understand how to build diversified portfolios, which includes a position in ARCELORMITTAL LUXEMBOURG 675. Also, note that the market value of any corporate bond could be tightly coupled with the direction of predictive economic indicators such as signals in nation.
Note that the ARCELORMITTAL LUXEMB information on this page should be used as a complementary analysis to other ARCELORMITTAL's statistical models used 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Please note, there is a significant difference between ARCELORMITTAL's value and its price as these two are different measures arrived at by different means. Investors typically determine if ARCELORMITTAL is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, ARCELORMITTAL's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.