Correlation Between Allied Motion and Via Optronics
Can any of the company-specific risk be diversified away by investing in both Allied Motion and Via Optronics 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 Allied Motion and Via Optronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Allied Motion Technologies and Via Optronics Ag, you can compare the effects of market volatilities on Allied Motion and Via Optronics 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 Allied Motion with a short position of Via Optronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allied Motion and Via Optronics.
Diversification Opportunities for Allied Motion and Via Optronics
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Allied and Via is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Allied Motion Technologies and Via Optronics Ag in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Via Optronics Ag and Allied Motion 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 Allied Motion Technologies are associated (or correlated) with Via Optronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Via Optronics Ag has no effect on the direction of Allied Motion i.e., Allied Motion and Via Optronics go up and down completely randomly.
Pair Corralation between Allied Motion and Via Optronics
If you would invest 15.00 in Via Optronics Ag on October 24, 2024 and sell it today you would earn a total of 0.00 from holding Via Optronics Ag or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Allied Motion Technologies vs. Via Optronics Ag
Performance |
| Timeline |
| Allied Motion Techno |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Via Optronics Ag |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Allied Motion and Via Optronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allied Motion and Via Optronics
The main advantage of trading using opposite Allied Motion and Via Optronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allied Motion position performs unexpectedly, Via Optronics 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 Via Optronics will offset losses from the drop in Via Optronics' long position.| Allied Motion vs. Plexus Corp | Allied Motion vs. Sanmina | Allied Motion vs. Bel Fuse A | Allied Motion vs. Methode Electronics |
| Via Optronics vs. Benchmark Electronics | Via Optronics vs. Bel Fuse A | Via Optronics vs. Methode Electronics | Via Optronics vs. Bel Fuse B |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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