Correlation Between CurrentC Power and ArcelorMittal

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

By analyzing existing cross correlation between CurrentC Power and ArcelorMittal SA ADR, you can compare the effects of market volatilities on CurrentC Power and ArcelorMittal 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 CurrentC Power with a short position of ArcelorMittal. Check out your portfolio center. Please also check ongoing floating volatility patterns of CurrentC Power and ArcelorMittal.

Diversification Opportunities for CurrentC Power and ArcelorMittal

-0.07

Correlation Coefficient

CurrentC Power  ArcelorMittal

Good diversification

The 3 months correlation between CurrentC and ArcelorMittal is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding CurrentC Power and ArcelorMittal SA ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ArcelorMittal SA ADR and CurrentC Power 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 CurrentC Power are associated (or correlated) with ArcelorMittal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ArcelorMittal SA ADR has no effect on the direction of CurrentC Power i.e., CurrentC Power and ArcelorMittal go up and down completely randomly.

Pair Corralation between CurrentC Power and ArcelorMittal

Given the investment horizon of 90 days CurrentC Power is expected to generate 32.9 times more return on investment than ArcelorMittal. However, CurrentC Power is 32.9 times more volatile than ArcelorMittal SA ADR. It trades about 0.21 of its potential returns per unit of risk. ArcelorMittal SA ADR is currently generating about 0.02 per unit of risk. If you would invest  2.70  in CurrentC Power on May 15, 2025 and sell it today you would lose (0.80) from holding CurrentC Power or give up 29.63% of portfolio value over 90 days.

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

CurrentC Power  vs.  ArcelorMittal SA ADR

CurrentC Power

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in CurrentC Power are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal fundamental indicators, CurrentC Power showed solid returns over the last few months and may actually be approaching a breakup point.

ArcelorMittal SA ADR

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in ArcelorMittal SA ADR are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, ArcelorMittal may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with CurrentC Power and ArcelorMittal

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

The idea behind CurrentC Power and ArcelorMittal SA ADR 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.