Correlation Between Allegro Microsystems and SPECTRA
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By analyzing existing cross correlation between Allegro Microsystems and SPECTRA ENERGY PARTNERS, you can compare the effects of market volatilities on Allegro Microsystems and SPECTRA 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 Allegro Microsystems with a short position of SPECTRA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allegro Microsystems and SPECTRA.
Diversification Opportunities for Allegro Microsystems and SPECTRA
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Allegro and SPECTRA is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Allegro Microsystems and SPECTRA ENERGY PARTNERS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPECTRA ENERGY PARTNERS and Allegro Microsystems 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 Allegro Microsystems are associated (or correlated) with SPECTRA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPECTRA ENERGY PARTNERS has no effect on the direction of Allegro Microsystems i.e., Allegro Microsystems and SPECTRA go up and down completely randomly.
Pair Corralation between Allegro Microsystems and SPECTRA
Given the investment horizon of 90 days Allegro Microsystems is expected to generate 5.89 times more return on investment than SPECTRA. However, Allegro Microsystems is 5.89 times more volatile than SPECTRA ENERGY PARTNERS. It trades about 0.3 of its potential returns per unit of risk. SPECTRA ENERGY PARTNERS is currently generating about -0.27 per unit of risk. If you would invest 2,159 in Allegro Microsystems on October 21, 2024 and sell it today you would earn a total of 325.00 from holding Allegro Microsystems or generate 15.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Allegro Microsystems vs. SPECTRA ENERGY PARTNERS
Performance |
| Timeline |
| Allegro Microsystems |
| SPECTRA ENERGY PARTNERS |
Allegro Microsystems and SPECTRA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allegro Microsystems and SPECTRA
The main advantage of trading using opposite Allegro Microsystems and SPECTRA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allegro Microsystems position performs unexpectedly, SPECTRA 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 SPECTRA will offset losses from the drop in SPECTRA's long position.| Allegro Microsystems vs. Synaptics Incorporated | Allegro Microsystems vs. Microchip Technology | Allegro Microsystems vs. Qorvo Inc | Allegro Microsystems vs. Monolithic Power Systems |
| SPECTRA vs. AEP TEX INC | SPECTRA vs. US BANK NATIONAL | SPECTRA vs. KULR Technology Group | SPECTRA vs. DocuSign |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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