Correlation Between Steel Partners and Robix Environmental

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

By analyzing existing cross correlation between Steel Partners Holdings and Robix Environmental Technologies, you can compare the effects of market volatilities on Steel Partners and Robix Environmental 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 Steel Partners with a short position of Robix Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Steel Partners and Robix Environmental.

Diversification Opportunities for Steel Partners and Robix Environmental

0.0

Correlation Coefficient

Steel Partners  Robix Environmental

Pay attention - limited upside

The 3 months correlation between Steel and Robix is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Steel Partners Holdings and Robix Environmental Technologi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Robix Environmental and Steel Partners 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 Steel Partners Holdings are associated (or correlated) with Robix Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Robix Environmental has no effect on the direction of Steel Partners i.e., Steel Partners and Robix Environmental go up and down completely randomly.

Pair Corralation between Steel Partners and Robix Environmental

If you would invest  2,453  in Steel Partners Holdings on January 3, 2025 and sell it today you would earn a total of  2.00  from holding Steel Partners Holdings or generate 0.08% return on investment over 90 days.

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

Steel Partners Holdings  vs.  Robix Environmental Technologi

Steel Partners Holdings

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Steel Partners Holdings are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Steel Partners is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Robix Environmental

Risk-Adjusted Performance

Very Weak

Over the last 90 days Robix Environmental Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Robix Environmental is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Steel Partners and Robix Environmental

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

The idea behind Steel Partners Holdings and Robix Environmental Technologies 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.