Correlation Between Worthington Steel and AdvanSix
Can any of the company-specific risk be diversified away by investing in both Worthington Steel and AdvanSix 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 Worthington Steel and AdvanSix into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Worthington Steel and AdvanSix, you can compare the effects of market volatilities on Worthington Steel and AdvanSix 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 Worthington Steel with a short position of AdvanSix. Check out your portfolio center. Please also check ongoing floating volatility patterns of Worthington Steel and AdvanSix.
Diversification Opportunities for Worthington Steel and AdvanSix
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Worthington and AdvanSix is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Worthington Steel and AdvanSix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AdvanSix and Worthington 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 Worthington Steel are associated (or correlated) with AdvanSix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AdvanSix has no effect on the direction of Worthington Steel i.e., Worthington Steel and AdvanSix go up and down completely randomly.
Pair Corralation between Worthington Steel and AdvanSix
Allowing for the 90-day total investment horizon Worthington Steel is expected to generate 1.57 times more return on investment than AdvanSix. However, Worthington Steel is 1.57 times more volatile than AdvanSix. It trades about 0.14 of its potential returns per unit of risk. AdvanSix is currently generating about -0.06 per unit of risk. If you would invest 2,559 in Worthington Steel on May 31, 2025 and sell it today you would earn a total of 779.00 from holding Worthington Steel or generate 30.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Worthington Steel vs. AdvanSix
Performance |
| Timeline |
| Worthington Steel |
| AdvanSix |
Worthington Steel and AdvanSix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Worthington Steel and AdvanSix
The main advantage of trading using opposite Worthington Steel and AdvanSix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Worthington Steel position performs unexpectedly, AdvanSix 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 AdvanSix will offset losses from the drop in AdvanSix's long position.| Worthington Steel vs. American Airlines Group | Worthington Steel vs. Evertz Technologies Limited | Worthington Steel vs. Global Crossing Airlines | Worthington Steel vs. Alaska Air Group |
| AdvanSix vs. ArcBest Corp | AdvanSix vs. Donnelley Financial Solutions | AdvanSix vs. Green Plains Renewable | AdvanSix vs. Garrett Motion |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |