Steel Dynamics Correlations

STLD Stock

USD 147.78 1.23 0.84%

The current 90-days correlation between Steel Dynamics and Nucor Corp is 0.64 (i.e., Poor diversification). The correlation of Steel Dynamics is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.

Steel Dynamics Correlation With Market

Weak diversification

The correlation between Steel Dynamics and DJI is 0.38 (i.e., Weak diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Steel Dynamics and DJI in the same portfolio, assuming nothing else is changed.

Build AI portfolio with Steel Stock

Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Steel Dynamics. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors.

For information on how to trade Steel Stock refer to our How to Trade Steel Stock guide.

Moving together with Steel Stock

0.81	AA	Alcoa Corp	Pair Corr
0.79	GGB	Gerdau SA ADR	Pair Corr
0.7	CENX	Century Aluminum	Pair Corr
0.79	CSTM	Constellium Nv	Pair Corr
0.63	SSNLF	Samsung Electronics	Pair Corr
0.62	EC	Ecopetrol SA ADR	Pair Corr
0.75	ENTO	Entero Therapeutics, Upward Rally	Pair Corr
0.72	VPV	Invesco Pennsylvania	Pair Corr
0.85	SCCO	Southern Copper	Pair Corr
0.65	REI	Ring Energy	Pair Corr
0.62	BTE	Baytex Energy Corp Aggressive Push	Pair Corr
0.62	IDR	Idaho Strategic Resources	Pair Corr
0.68	OBE	Obsidian Energy	Pair Corr

Moving against Steel Stock

0.57	WOR	Worthington Industries	Pair Corr
0.54	ADVWW	Advantage Solutions	Pair Corr
0.32	TM	Trigon Metals	Pair Corr
0.64	PPERY	Bank Mandiri Persero	Pair Corr
0.48	PTAIF	PT Astra International	Pair Corr
0.4	GNRC	Generac Holdings	Pair Corr
0.31	PPERF	Bank Mandiri Persero	Pair Corr

Related Correlations Analysis

	NUE	X	RS	MT	CMC
NUE		-0.58	0.22	-0.36	0.11	NUE
X	-0.58		-0.42	0.78	0.54	X
RS	0.22	-0.42		-0.26	-0.5	RS
MT	-0.36	0.78	-0.26		0.62	MT
CMC	0.11	0.54	-0.5	0.62		CMC
	NUE	X	RS	MT	CMC

Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.

High positive correlations

MT	+ 0.78	X
CMC	+ 0.62	MT
CMC	+ 0.54	X
RS	+ 0.22	NUE
CMC	+ 0.11	NUE

High negative correlations

X	- 0.58	NUE
CMC	- 0.5	RS
RS	- 0.42	X
MT	- 0.36	NUE
MT	- 0.26	RS

Risk-Adjusted Indicators

There is a big difference between Steel Stock performing well and Steel Dynamics Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Steel Dynamics' multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

	Mean Deviation	Jensen Alpha	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
NUE	1.29	(0.09)	0.00	(0.01)	0.00	0.00	2.70	(2.46)	9.21
X	2.20	0.50	0.15	(2.46)	2.48	(2.81)	4.50	(4.10)	25.71
RS	1.11	(0.33)	0.00	(0.13)	0.00	0.00	1.69	(2.06)	14.01
MT	1.56	0.27	0.17	0.32	1.33	(1.85)	3.60	(2.16)	7.02
CMC	1.46	0.08	0.09	0.11	1.42	(1.71)	3.20	(2.41)	7.82

Steel Dynamics Corporate Executives

Elected by the shareholders, the Steel Dynamics' board of directors comprises two types of representatives: Steel Dynamics inside directors who are chosen from within the company, and outside directors, selected externally and held independent of Steel. The board's role is to monitor Steel Dynamics' management team and ensure that shareholders' interests are well served. Steel Dynamics' inside directors are responsible for reviewing and approving budgets prepared by upper management to implement core corporate initiatives and projects. On the other hand, Steel Dynamics' outside directors are responsible for providing unbiased perspectives on the board's policies.

Theresa Wagler

CFO, Chief Accounting Officer and Executive VP

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