Correlation Between BlueScope Steel and Environmental Packaging
Can any of the company-specific risk be diversified away by investing in both BlueScope Steel and Environmental Packaging 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 BlueScope Steel and Environmental Packaging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BlueScope Steel Ltd and Environmental Packaging Technologies, you can compare the effects of market volatilities on BlueScope Steel and Environmental Packaging 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 BlueScope Steel with a short position of Environmental Packaging. Check out your portfolio center. Please also check ongoing floating volatility patterns of BlueScope Steel and Environmental Packaging.
Diversification Opportunities for BlueScope Steel and Environmental Packaging
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BlueScope and Environmental is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BlueScope Steel Ltd and Environmental Packaging Techno in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Environmental Packaging and BlueScope 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 BlueScope Steel Ltd are associated (or correlated) with Environmental Packaging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Environmental Packaging has no effect on the direction of BlueScope Steel i.e., BlueScope Steel and Environmental Packaging go up and down completely randomly.
Pair Corralation between BlueScope Steel and Environmental Packaging
If you would invest 7,369 in BlueScope Steel Ltd on September 4, 2025 and sell it today you would earn a total of 418.00 from holding BlueScope Steel Ltd or generate 5.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BlueScope Steel Ltd vs. Environmental Packaging Techno
Performance |
| Timeline |
| BlueScope Steel |
| Environmental Packaging |
BlueScope Steel and Environmental Packaging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BlueScope Steel and Environmental Packaging
The main advantage of trading using opposite BlueScope Steel and Environmental Packaging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BlueScope Steel position performs unexpectedly, Environmental Packaging 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 Environmental Packaging will offset losses from the drop in Environmental Packaging's long position.| BlueScope Steel vs. BCP Investment Corp | BlueScope Steel vs. Silicon Motion Technology | BlueScope Steel vs. Guangdong Investment Limited | BlueScope Steel vs. Sumitomo Chemical Co |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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