Correlation Between Cleveland Cliffs and Compaa Minera

Can any of the company-specific risk be diversified away by investing in both Cleveland Cliffs and Compaa Minera 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 Cleveland Cliffs and Compaa Minera into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Cleveland Cliffs and Compaa Minera Autln, you can compare the effects of market volatilities on Cleveland Cliffs and Compaa Minera 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 Cleveland Cliffs with a short position of Compaa Minera. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cleveland Cliffs and Compaa Minera.

Diversification Opportunities for Cleveland Cliffs and Compaa Minera

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Correlation Coefficient

Cleveland Cliffs  Compaa Minera

Pay attention - limited upside

The 3 months correlation between Cleveland and Compaa is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Cleveland Cliffs and Compaa Minera Autln in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Compaa Minera Autln and Cleveland Cliffs 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 Cleveland Cliffs are associated (or correlated) with Compaa Minera. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Compaa Minera Autln has no effect on the direction of Cleveland Cliffs i.e., Cleveland Cliffs and Compaa Minera go up and down completely randomly.

Pair Corralation between Cleveland Cliffs and Compaa Minera

Assuming the 90 days trading horizon Cleveland Cliffs is expected to generate 1.78 times more return on investment than Compaa Minera. However, Cleveland Cliffs is 1.78 times more volatile than Compaa Minera Autln. It trades about 0.09 of its potential returns per unit of risk. Compaa Minera Autln is currently generating about 0.11 per unit of risk. If you would invest  14,119  in Cleveland Cliffs on April 20, 2025 and sell it today you would earn a total of  3,681  from holding Cleveland Cliffs or generate 26.07% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Cleveland Cliffs  vs.  Compaa Minera Autln

Cleveland Cliffs

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Cleveland Cliffs are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak technical and fundamental indicators, Cleveland Cliffs showed solid returns over the last few months and may actually be approaching a breakup point.

Compaa Minera Autln

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Compaa Minera Autln are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak essential indicators, Compaa Minera sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Cleveland Cliffs and Compaa Minera

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

The idea behind Cleveland Cliffs and Compaa Minera Autln 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.