Correlation Between Allient and EnLink
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By analyzing existing cross correlation between Allient and EnLink Midstream Partners, you can compare the effects of market volatilities on Allient and EnLink 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 EnLink. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allient and EnLink.
Diversification Opportunities for Allient and EnLink
Excellent diversification
The 3 months correlation between Allient and EnLink is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Allient and EnLink Midstream Partners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EnLink Midstream Partners 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 EnLink. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EnLink Midstream Partners has no effect on the direction of Allient i.e., Allient and EnLink go up and down completely randomly.
Pair Corralation between Allient and EnLink
Given the investment horizon of 90 days Allient is expected to under-perform the EnLink. But the stock apears to be less risky and, when comparing its historical volatility, Allient is 23.95 times less risky than EnLink. The stock trades about -0.01 of its potential returns per unit of risk. The EnLink Midstream Partners is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 8,451 in EnLink Midstream Partners on September 3, 2024 and sell it today you would lose (621.00) from holding EnLink Midstream Partners or give up 7.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 87.27% |
| Values | Daily Returns |
Allient vs. EnLink Midstream Partners
Performance |
| Timeline |
| Allient |
| EnLink Midstream Partners |
Allient and EnLink Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allient and EnLink
The main advantage of trading using opposite Allient and EnLink positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allient position performs unexpectedly, EnLink 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 EnLink will offset losses from the drop in EnLink's long position.The idea behind Allient and EnLink Midstream Partners 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.| EnLink vs. Kulicke and Soffa | EnLink vs. MagnaChip Semiconductor | EnLink vs. MACOM Technology Solutions | EnLink vs. Allient |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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