Correlation Between Usinas Siderurgicas and Alamos Gold
Can any of the company-specific risk be diversified away by investing in both Usinas Siderurgicas and Alamos Gold 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 Usinas Siderurgicas and Alamos Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Usinas Siderurgicas de and Alamos Gold, you can compare the effects of market volatilities on Usinas Siderurgicas and Alamos Gold 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 Usinas Siderurgicas with a short position of Alamos Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Usinas Siderurgicas and Alamos Gold.
Diversification Opportunities for Usinas Siderurgicas and Alamos Gold
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Usinas and Alamos is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Usinas Siderurgicas de and Alamos Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alamos Gold and Usinas Siderurgicas 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 Usinas Siderurgicas de are associated (or correlated) with Alamos Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alamos Gold has no effect on the direction of Usinas Siderurgicas i.e., Usinas Siderurgicas and Alamos Gold go up and down completely randomly.
Pair Corralation between Usinas Siderurgicas and Alamos Gold
Assuming the 90 days horizon Usinas Siderurgicas is expected to generate 34.51 times less return on investment than Alamos Gold. In addition to that, Usinas Siderurgicas is 1.47 times more volatile than Alamos Gold. It trades about 0.0 of its total potential returns per unit of risk. Alamos Gold is currently generating about 0.08 per unit of volatility. If you would invest 703.00 in Alamos Gold on February 6, 2024 and sell it today you would earn a total of 800.00 from holding Alamos Gold or generate 113.8% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Usinas Siderurgicas de vs. Alamos Gold
Performance |
Timeline |
Usinas Siderurgicas |
Alamos Gold |
Usinas Siderurgicas and Alamos Gold Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Usinas Siderurgicas and Alamos Gold
The main advantage of trading using opposite Usinas Siderurgicas and Alamos Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Usinas Siderurgicas position performs unexpectedly, Alamos Gold 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 Alamos Gold will offset losses from the drop in Alamos Gold's long position.Usinas Siderurgicas vs. Nucor Corp | Usinas Siderurgicas vs. United States Steel | Usinas Siderurgicas vs. Reliance Steel Aluminum | Usinas Siderurgicas vs. ArcelorMittal SA ADR |
Alamos Gold vs. Paramount Gold Nevada | Alamos Gold vs. Liberty Gold Corp | Alamos Gold vs. International Tower Hill | Alamos Gold vs. Allegiant Gold |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
Bonds Directory Find actively traded corporate debentures issued by US companies | |
FinTech Suite Use AI to screen and filter profitable investment opportunities | |
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
Global Correlations Find global opportunities by holding instruments from different markets | |
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
Money Managers Screen money managers from public funds and ETFs managed around the world | |
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |