Correlation Between Bet At and Allegheny Technologies
Can any of the company-specific risk be diversified away by investing in both Bet At and Allegheny Technologies 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 Bet At and Allegheny Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between bet at home AG and Allegheny Technologies Incorporated, you can compare the effects of market volatilities on Bet At and Allegheny Technologies 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 Bet At with a short position of Allegheny Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bet At and Allegheny Technologies.
Diversification Opportunities for Bet At and Allegheny Technologies
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bet and Allegheny is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding bet at home AG and Allegheny Technologies Incorpo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allegheny Technologies and Bet At 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 bet at home AG are associated (or correlated) with Allegheny Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allegheny Technologies has no effect on the direction of Bet At i.e., Bet At and Allegheny Technologies go up and down completely randomly.
Pair Corralation between Bet At and Allegheny Technologies
Assuming the 90 days trading horizon bet at home AG is expected to generate 5.1 times more return on investment than Allegheny Technologies. However, Bet At is 5.1 times more volatile than Allegheny Technologies Incorporated. It trades about 0.15 of its potential returns per unit of risk. Allegheny Technologies Incorporated is currently generating about 0.08 per unit of risk. If you would invest 248.00 in bet at home AG on October 31, 2024 and sell it today you would earn a total of 43.00 from holding bet at home AG or generate 17.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
bet at home AG vs. Allegheny Technologies Incorpo
Performance |
| Timeline |
| bet at home |
| Allegheny Technologies |
Bet At and Allegheny Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bet At and Allegheny Technologies
The main advantage of trading using opposite Bet At and Allegheny Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bet At position performs unexpectedly, Allegheny Technologies 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 Allegheny Technologies will offset losses from the drop in Allegheny Technologies' long position.The idea behind bet at home AG and Allegheny Technologies Incorporated 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.| Allegheny Technologies vs. MARKET VECTR RETAIL | Allegheny Technologies vs. USWE SPORTS AB | Allegheny Technologies vs. IMPERIAL TOBACCO | Allegheny Technologies vs. PLAYTECH |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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