Correlation Between Allient and CONSUMERS
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By analyzing existing cross correlation between Allient and CONSUMERS ENERGY 325, you can compare the effects of market volatilities on Allient and CONSUMERS 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 CONSUMERS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allient and CONSUMERS.
Diversification Opportunities for Allient and CONSUMERS
Very good diversification
The 3 months correlation between Allient and CONSUMERS is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Allient and CONSUMERS ENERGY 325 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CONSUMERS ENERGY 325 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 CONSUMERS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CONSUMERS ENERGY 325 has no effect on the direction of Allient i.e., Allient and CONSUMERS go up and down completely randomly.
Pair Corralation between Allient and CONSUMERS
Given the investment horizon of 90 days Allient is expected to generate 0.62 times more return on investment than CONSUMERS. However, Allient is 1.6 times less risky than CONSUMERS. It trades about 0.41 of its potential returns per unit of risk. CONSUMERS ENERGY 325 is currently generating about 0.1 per unit of risk. If you would invest 2,336 in Allient on September 12, 2024 and sell it today you would earn a total of 399.00 from holding Allient or generate 17.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 68.18% |
| Values | Daily Returns |
Allient vs. CONSUMERS ENERGY 325
Performance |
| Timeline |
| Allient |
| CONSUMERS ENERGY 325 |
Allient and CONSUMERS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allient and CONSUMERS
The main advantage of trading using opposite Allient and CONSUMERS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allient position performs unexpectedly, CONSUMERS 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 CONSUMERS will offset losses from the drop in CONSUMERS's long position.The idea behind Allient and CONSUMERS ENERGY 325 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.| CONSUMERS vs. Sonida Senior Living | CONSUMERS vs. Valneva SE ADR | CONSUMERS vs. SunLink Health Systems | CONSUMERS vs. NetEase |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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