Correlation Between Allient and Macmahon Holdings
Can any of the company-specific risk be diversified away by investing in both Allient and Macmahon Holdings 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 Allient and Macmahon Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Allient and Macmahon Holdings Limited, you can compare the effects of market volatilities on Allient and Macmahon Holdings 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 Allient with a short position of Macmahon Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allient and Macmahon Holdings.
Diversification Opportunities for Allient and Macmahon Holdings
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Allient and Macmahon is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Allient and Macmahon Holdings Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Macmahon Holdings and Allient 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 Allient are associated (or correlated) with Macmahon Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Macmahon Holdings has no effect on the direction of Allient i.e., Allient and Macmahon Holdings go up and down completely randomly.
Pair Corralation between Allient and Macmahon Holdings
If you would invest 2,325 in Allient on September 13, 2024 and sell it today you would earn a total of 368.00 from holding Allient or generate 15.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Allient vs. Macmahon Holdings Limited
Performance |
| Timeline |
| Allient |
| Macmahon Holdings |
Allient and Macmahon Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allient and Macmahon Holdings
The main advantage of trading using opposite Allient and Macmahon Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allient position performs unexpectedly, Macmahon Holdings 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 Macmahon Holdings will offset losses from the drop in Macmahon Holdings' long position.| Allient vs. Vicor | Allient vs. LSI Industries | Allient vs. Shenzhen Genvict Technologies | Allient vs. Topsec Technologies Group |
| Macmahon Holdings vs. Western Digital | Macmahon Holdings vs. Volaris | Macmahon Holdings vs. Copa Holdings SA | Macmahon Holdings vs. NuRAN Wireless |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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