Correlation Between TRADEDOUBLER and United States
Can any of the company-specific risk be diversified away by investing in both TRADEDOUBLER and United States 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 TRADEDOUBLER and United States into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TRADEDOUBLER AB SK and United States Steel, you can compare the effects of market volatilities on TRADEDOUBLER 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 TRADEDOUBLER with a short position of United States. Check out your portfolio center. Please also check ongoing floating volatility patterns of TRADEDOUBLER and United States.
Diversification Opportunities for TRADEDOUBLER and United States
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between TRADEDOUBLER and United is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding TRADEDOUBLER AB SK and United States Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United States Steel and TRADEDOUBLER 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 TRADEDOUBLER AB SK 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 TRADEDOUBLER i.e., TRADEDOUBLER and United States go up and down completely randomly.
Pair Corralation between TRADEDOUBLER and United States
Assuming the 90 days horizon TRADEDOUBLER AB SK is expected to generate 1.07 times more return on investment than United States. However, TRADEDOUBLER is 1.07 times more volatile than United States Steel. It trades about 0.05 of its potential returns per unit of risk. United States Steel is currently generating about -0.03 per unit of risk. If you would invest 27.00 in TRADEDOUBLER AB SK on October 10, 2024 and sell it today you would earn a total of 2.00 from holding TRADEDOUBLER AB SK or generate 7.41% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
TRADEDOUBLER AB SK vs. United States Steel
Performance |
Timeline |
TRADEDOUBLER AB SK |
United States Steel |
TRADEDOUBLER and United States Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with TRADEDOUBLER and United States
The main advantage of trading using opposite TRADEDOUBLER and United States positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TRADEDOUBLER position performs unexpectedly, United States 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 United States will offset losses from the drop in United States' long position.TRADEDOUBLER vs. Zurich Insurance Group | TRADEDOUBLER vs. Vienna Insurance Group | TRADEDOUBLER vs. Safety Insurance Group | TRADEDOUBLER vs. Lamar Advertising |
United States vs. Sinopec Shanghai Petrochemical | United States vs. BW OFFSHORE LTD | United States vs. TIANDE CHEMICAL | United States vs. X FAB Silicon Foundries |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
FinTech Suite Use AI to screen and filter profitable investment opportunities | |
Global Correlations Find global opportunities by holding instruments from different markets | |
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |