Correlation Between Algoma Steel and CAMDEN
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By analyzing existing cross correlation between Algoma Steel Group and CAMDEN PPTY TR, you can compare the effects of market volatilities on Algoma Steel and CAMDEN 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 Algoma Steel with a short position of CAMDEN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Algoma Steel and CAMDEN.
Diversification Opportunities for Algoma Steel and CAMDEN
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Algoma and CAMDEN is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Algoma Steel Group and CAMDEN PPTY TR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CAMDEN PPTY TR and Algoma Steel 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 Algoma Steel Group are associated (or correlated) with CAMDEN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CAMDEN PPTY TR has no effect on the direction of Algoma Steel i.e., Algoma Steel and CAMDEN go up and down completely randomly.
Pair Corralation between Algoma Steel and CAMDEN
Given the investment horizon of 90 days Algoma Steel Group is expected to generate 3.09 times more return on investment than CAMDEN. However, Algoma Steel is 3.09 times more volatile than CAMDEN PPTY TR. It trades about -0.02 of its potential returns per unit of risk. CAMDEN PPTY TR is currently generating about -0.21 per unit of risk. If you would invest 1,007 in Algoma Steel Group on September 25, 2024 and sell it today you would lose (46.00) from holding Algoma Steel Group or give up 4.57% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 82.54% |
Values | Daily Returns |
Algoma Steel Group vs. CAMDEN PPTY TR
Performance |
Timeline |
Algoma Steel Group |
CAMDEN PPTY TR |
Algoma Steel and CAMDEN Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Algoma Steel and CAMDEN
The main advantage of trading using opposite Algoma Steel and CAMDEN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Algoma Steel position performs unexpectedly, CAMDEN 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 CAMDEN will offset losses from the drop in CAMDEN's long position.Algoma Steel vs. Friedman Industries | Algoma Steel vs. ArcelorMittal SA | Algoma Steel vs. Aperam PK | Algoma Steel vs. Acerinox SA ADR |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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