Correlation Between SavvyLong NVDA and Steel Dynamics
Can any of the company-specific risk be diversified away by investing in both SavvyLong NVDA and Steel Dynamics 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 SavvyLong NVDA and Steel Dynamics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SavvyLong NVDA ETF and Steel Dynamics, you can compare the effects of market volatilities on SavvyLong NVDA and Steel Dynamics 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 SavvyLong NVDA with a short position of Steel Dynamics. Check out your portfolio center. Please also check ongoing floating volatility patterns of SavvyLong NVDA and Steel Dynamics.
Diversification Opportunities for SavvyLong NVDA and Steel Dynamics
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SavvyLong and Steel is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding SavvyLong NVDA ETF and Steel Dynamics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Steel Dynamics and SavvyLong NVDA 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 SavvyLong NVDA ETF are associated (or correlated) with Steel Dynamics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Steel Dynamics has no effect on the direction of SavvyLong NVDA i.e., SavvyLong NVDA and Steel Dynamics go up and down completely randomly.
Pair Corralation between SavvyLong NVDA and Steel Dynamics
Assuming the 90 days trading horizon SavvyLong NVDA is expected to generate 1.14 times less return on investment than Steel Dynamics. In addition to that, SavvyLong NVDA is 2.37 times more volatile than Steel Dynamics. It trades about 0.07 of its total potential returns per unit of risk. Steel Dynamics is currently generating about 0.19 per unit of volatility. If you would invest 14,275 in Steel Dynamics on August 18, 2025 and sell it today you would earn a total of 1,266 from holding Steel Dynamics or generate 8.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SavvyLong NVDA ETF vs. Steel Dynamics
Performance |
| Timeline |
| SavvyLong NVDA ETF |
| Steel Dynamics |
SavvyLong NVDA and Steel Dynamics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SavvyLong NVDA and Steel Dynamics
The main advantage of trading using opposite SavvyLong NVDA and Steel Dynamics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SavvyLong NVDA position performs unexpectedly, Steel Dynamics 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 Steel Dynamics will offset losses from the drop in Steel Dynamics' long position.| SavvyLong NVDA vs. SavvyLong AMZN ETF | SavvyLong NVDA vs. SavvyLong TSLA ETF | SavvyLong NVDA vs. SavvyLong MSFT ETF | SavvyLong NVDA vs. SavvyLong Geared Crude |
| Steel Dynamics vs. Nucor Corp | Steel Dynamics vs. Reliance Steel Aluminum | Steel Dynamics vs. POSCO Holdings | Steel Dynamics vs. PPG Industries |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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