Correlation Between AK Steel and United States
Can any of the company-specific risk be diversified away by investing in both AK Steel 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 AK Steel and United States into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AK Steel Holding and United States Steel, you can compare the effects of market volatilities on AK Steel 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 AK Steel with a short position of United States. Check out your portfolio center. Please also check ongoing floating volatility patterns of AK Steel and United States.
Diversification Opportunities for AK Steel and United States
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AKS and United is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AK Steel Holding 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 AK 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 AK Steel Holding 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 AK Steel i.e., AK Steel and United States go up and down completely randomly.
Pair Corralation between AK Steel and United States
If you would invest 2,685 in United States Steel on January 26, 2024 and sell it today you would earn a total of 975.00 from holding United States Steel or generate 36.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
AK Steel Holding vs. United States Steel
Performance |
| Timeline |
| AK Steel Holding |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| United States Steel |
AK Steel and United States Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AK Steel and United States
The main advantage of trading using opposite AK Steel and United States positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AK Steel 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.| AK Steel vs. Tesla Inc | AK Steel vs. FDG Electric Vehicles | AK Steel vs. Bank of America | AK Steel vs. Modine Manufacturing |
| United States vs. Cleveland Cliffs | United States vs. Reliance Steel Aluminum | United States vs. Ternium 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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