Correlation Between Companhia Siderurgica and SSR Mining

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

By analyzing existing cross correlation between Companhia Siderurgica Nacional and SSR Mining, you can compare the effects of market volatilities on Companhia Siderurgica and SSR Mining 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 Companhia Siderurgica with a short position of SSR Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Companhia Siderurgica and SSR Mining.

Diversification Opportunities for Companhia Siderurgica and SSR Mining

-0.72

Correlation Coefficient

Companhia Siderurgica  SSR Mining

Pay attention - limited upside

The 3 months correlation between Companhia and SSR is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Companhia Siderurgica Nacional and SSR Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SSR Mining and Companhia Siderurgica 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 Companhia Siderurgica Nacional are associated (or correlated) with SSR Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SSR Mining has no effect on the direction of Companhia Siderurgica i.e., Companhia Siderurgica and SSR Mining go up and down completely randomly.

Pair Corralation between Companhia Siderurgica and SSR Mining

Considering the 90-day investment horizon Companhia Siderurgica Nacional is expected to under-perform the SSR Mining. In addition to that, Companhia Siderurgica is 1.04 times more volatile than SSR Mining. It trades about -0.07 of its total potential returns per unit of risk. SSR Mining is currently generating about 0.09 per unit of volatility. If you would invest  1,092  in SSR Mining on May 6, 2025 and sell it today you would earn a total of  165.00  from holding SSR Mining or generate 15.11% return on investment over 90 days.

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

Companhia Siderurgica Nacional  vs.  SSR Mining

Companhia Siderurgica

Risk-Adjusted Performance

Very Weak

Over the last 90 days Companhia Siderurgica Nacional has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's forward indicators remain rather sound which may send shares a bit higher in September 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

SSR Mining

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in SSR Mining are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain basic indicators, SSR Mining displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Companhia Siderurgica and SSR Mining

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

The idea behind Companhia Siderurgica Nacional and SSR Mining 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.