Correlation Analysis Between United States and Steel Dynamics

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

United States Steel  
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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 unsteady performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in February 2020. The current disturbance may also be a sign of long term up-swing for the company investors.
Steel Dynamics  
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Risk-Adjusted Performance

Over the last 30 days Steel Dynamics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental drivers, Steel Dynamics is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

United States and Steel Dynamics Volatility Contrast

 Predicted Return Density 
    
  Returns 

United States Steel Corp.  vs.  Steel Dynamics Inc

 Performance (%) 
    
  Timeline 

Pair Volatility

Taking into account the 30 trading days horizon, United States Steel Corporation is expected to under-perform the Steel Dynamics. In addition to that, United States is 2.28 times more volatile than Steel Dynamics. It trades about -0.11 of its total potential returns per unit of risk. Steel Dynamics is currently generating about 0.0 per unit of volatility. If you would invest  3,095  in Steel Dynamics on December 26, 2019 and sell it today you would lose (20.00)  from holding Steel Dynamics or give up 0.65% of portfolio value over 30 days.

Pair Corralation between United States and Steel Dynamics

0.18
Time Period3 Months [change]
DirectionPositive 
StrengthInsignificant
Accuracy98.39%
ValuesDaily Returns

Diversification Opportunities for United States and Steel Dynamics

United States Steel Corp. diversification synergy

Average diversification

Overlapping area represents the amount of risk that can be diversified away by holding United States Steel Corp. and Steel Dynamics Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Steel Dynamics 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 Corporation are associated (or correlated) with Steel Dynamics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Steel Dynamics has no effect on the direction of United States i.e. United States and Steel Dynamics go up and down completely randomly.
See also your portfolio center. Please also try Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.