Correlation Analysis Between Weyerhaeuser and United States

Analyzing existing cross correlation between Weyerhaeuser Company and United States Steel Corporation. You can compare the effects of market volatilities on Weyerhaeuser and United States 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 Weyerhaeuser with a short position of United States. See also your portfolio center. Please also check ongoing floating volatility patterns of Weyerhaeuser and United States.
Horizon     30 Days    Login   to change
Symbolsvs
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Comparative Performance

Weyerhaeuser  
77

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Weyerhaeuser Company are ranked lower than 7 (%) of all global equities and portfolios over the last 30 days. Inspite fairly fragile basic indicators, Weyerhaeuser may actually be approaching a critical reversion point that can send shares even higher in February 2020.
United States Steel  
00

Risk-Adjusted Performance

Over the last 30 days United States Steel Corporation has generated negative risk-adjusted returns adding no value to investors with long positions. Inspite fairly strong basic indicators, United States is not utilizing all of its potentials. The ongoing stock price disturbance, may contribute to short term losses for the investors.

Weyerhaeuser and United States Volatility Contrast

 Predicted Return Density 
    
  Returns 

Weyerhaeuser Company  vs.  United States Steel Corp.

 Performance (%) 
    
  Timeline 

Pair Volatility

Allowing for the 30-days total investment horizon, Weyerhaeuser Company is expected to generate 0.3 times more return on investment than United States. However, Weyerhaeuser Company is 3.28 times less risky than United States. It trades about 0.12 of its potential returns per unit of risk. United States Steel Corporation is currently generating about 0.01 per unit of risk. If you would invest  2,873  in Weyerhaeuser Company on December 20, 2019 and sell it today you would earn a total of  225.00  from holding Weyerhaeuser Company or generate 7.83% return on investment over 30 days.

Pair Corralation between Weyerhaeuser and United States

-0.09
Time Period3 Months [change]
DirectionNegative 
StrengthInsignificant
Accuracy98.41%
ValuesDaily Returns

Diversification Opportunities for Weyerhaeuser and United States

Weyerhaeuser Company diversification synergy

Good diversification

Overlapping area represents the amount of risk that can be diversified away by holding Weyerhaeuser Company and United States Steel Corp. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on United States Steel and Weyerhaeuser 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 Weyerhaeuser Company are associated (or correlated) with United States. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United States Steel has no effect on the direction of Weyerhaeuser i.e. Weyerhaeuser and United States go up and down completely randomly.
See also your portfolio center. Please also try Price Transformation module to use price transformation models to analyze depth of different equity instruments across global markets.