Correlation Between Theglobe and Steel Connect
Can any of the company-specific risk be diversified away by investing in both Theglobe and Steel Connect 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 Theglobe and Steel Connect into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between theglobe and Steel Connect, you can compare the effects of market volatilities on Theglobe and Steel Connect 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 Theglobe with a short position of Steel Connect. Check out your portfolio center. Please also check ongoing floating volatility patterns of Theglobe and Steel Connect.
Diversification Opportunities for Theglobe and Steel Connect
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Theglobe and Steel is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding theglobe and Steel Connect in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Steel Connect and Theglobe 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 theglobe are associated (or correlated) with Steel Connect. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Steel Connect has no effect on the direction of Theglobe i.e., Theglobe and Steel Connect go up and down completely randomly.
Pair Corralation between Theglobe and Steel Connect
If you would invest 881.00 in Steel Connect on March 12, 2024 and sell it today you would earn a total of 294.00 from holding Steel Connect or generate 33.37% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 1.59% |
Values | Daily Returns |
theglobe vs. Steel Connect
Performance |
Timeline |
theglobe |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Steel Connect |
Theglobe and Steel Connect Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Theglobe and Steel Connect
The main advantage of trading using opposite Theglobe and Steel Connect positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Theglobe position performs unexpectedly, Steel Connect 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 Steel Connect will offset losses from the drop in Steel Connect's long position.Theglobe vs. Blockchain Industries | Theglobe vs. Plandai Biotech | Theglobe vs. KAT Exploration | Theglobe vs. A1 Group |
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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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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