Correlation Between Grupo Carso and ALGOMA STEEL
Can any of the company-specific risk be diversified away by investing in both Grupo Carso and ALGOMA 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 Grupo Carso and ALGOMA STEEL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grupo Carso SAB and ALGOMA STEEL GROUP, you can compare the effects of market volatilities on Grupo Carso and ALGOMA 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 Grupo Carso with a short position of ALGOMA STEEL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Carso and ALGOMA STEEL.
Diversification Opportunities for Grupo Carso and ALGOMA STEEL
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Grupo and ALGOMA is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Carso SAB and ALGOMA STEEL GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ALGOMA STEEL GROUP and Grupo Carso 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 Grupo Carso SAB are associated (or correlated) with ALGOMA STEEL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ALGOMA STEEL GROUP has no effect on the direction of Grupo Carso i.e., Grupo Carso and ALGOMA STEEL go up and down completely randomly.
Pair Corralation between Grupo Carso and ALGOMA STEEL
Assuming the 90 days horizon Grupo Carso SAB is expected to generate 0.59 times more return on investment than ALGOMA STEEL. However, Grupo Carso SAB is 1.69 times less risky than ALGOMA STEEL. It trades about 0.03 of its potential returns per unit of risk. ALGOMA STEEL GROUP is currently generating about -0.23 per unit of risk. If you would invest 520.00 in Grupo Carso SAB on December 28, 2024 and sell it today you would earn a total of 10.00 from holding Grupo Carso SAB or generate 1.92% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Grupo Carso SAB vs. ALGOMA STEEL GROUP
Performance |
Timeline |
Grupo Carso SAB |
ALGOMA STEEL GROUP |
Grupo Carso and ALGOMA STEEL Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Grupo Carso and ALGOMA STEEL
The main advantage of trading using opposite Grupo Carso and ALGOMA STEEL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Carso position performs unexpectedly, ALGOMA 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 ALGOMA STEEL will offset losses from the drop in ALGOMA STEEL's long position.Grupo Carso vs. CyberArk Software | Grupo Carso vs. Magic Software Enterprises | Grupo Carso vs. Guidewire Software | Grupo Carso vs. ATOSS SOFTWARE |
ALGOMA STEEL vs. TELECOM ITALRISP ADR10 | ALGOMA STEEL vs. SBA Communications Corp | ALGOMA STEEL vs. Liberty Broadband | ALGOMA STEEL vs. Charter Communications |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
Equity Valuation Check real value of public entities based on technical and fundamental data | |
Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |