Correlation Between ALGOMA STEEL and DENTSPLY SIRONA

Can any of the company-specific risk be diversified away by investing in both ALGOMA STEEL and DENTSPLY SIRONA 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 ALGOMA STEEL and DENTSPLY SIRONA into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between ALGOMA STEEL GROUP and DENTSPLY SIRONA, you can compare the effects of market volatilities on ALGOMA STEEL and DENTSPLY SIRONA 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 DENTSPLY SIRONA. Check out your portfolio center. Please also check ongoing floating volatility patterns of ALGOMA STEEL and DENTSPLY SIRONA.

Diversification Opportunities for ALGOMA STEEL and DENTSPLY SIRONA

0.5

Correlation Coefficient

ALGOMA STEEL  DENTSPLY SIRONA

Very weak diversification

The 3 months correlation between ALGOMA and DENTSPLY is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding ALGOMA STEEL GROUP and DENTSPLY SIRONA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DENTSPLY SIRONA 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 DENTSPLY SIRONA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DENTSPLY SIRONA has no effect on the direction of ALGOMA STEEL i.e., ALGOMA STEEL and DENTSPLY SIRONA go up and down completely randomly.

Pair Corralation between ALGOMA STEEL and DENTSPLY SIRONA

Assuming the 90 days horizon ALGOMA STEEL GROUP is expected to generate 1.24 times more return on investment than DENTSPLY SIRONA. However, ALGOMA STEEL is 1.24 times more volatile than DENTSPLY SIRONA. It trades about 0.16 of its potential returns per unit of risk. DENTSPLY SIRONA is currently generating about 0.1 per unit of risk. If you would invest  426.00  in ALGOMA STEEL GROUP on April 24, 2025 and sell it today you would earn a total of  164.00  from holding ALGOMA STEEL GROUP or generate 38.5% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

ALGOMA STEEL GROUP  vs.  DENTSPLY SIRONA

ALGOMA STEEL GROUP

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in ALGOMA STEEL GROUP are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, ALGOMA STEEL reported solid returns over the last few months and may actually be approaching a breakup point.

DENTSPLY SIRONA

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in DENTSPLY SIRONA are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, DENTSPLY SIRONA unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with ALGOMA STEEL and DENTSPLY SIRONA

The main advantage of trading using opposite ALGOMA STEEL and DENTSPLY SIRONA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ALGOMA STEEL position performs unexpectedly, DENTSPLY SIRONA 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 DENTSPLY SIRONA will offset losses from the drop in DENTSPLY SIRONA's long position.

The idea behind ALGOMA STEEL GROUP and DENTSPLY SIRONA pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.