Correlation Between Allegheny Technologies and USWE SPORTS
Can any of the company-specific risk be diversified away by investing in both Allegheny Technologies and USWE SPORTS 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 Allegheny Technologies and USWE SPORTS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Allegheny Technologies Incorporated and USWE SPORTS AB, you can compare the effects of market volatilities on Allegheny Technologies and USWE SPORTS 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 Allegheny Technologies with a short position of USWE SPORTS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allegheny Technologies and USWE SPORTS.
Diversification Opportunities for Allegheny Technologies and USWE SPORTS
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Allegheny and USWE is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Allegheny Technologies Incorpo and USWE SPORTS AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on USWE SPORTS AB and Allegheny Technologies 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 Allegheny Technologies Incorporated are associated (or correlated) with USWE SPORTS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of USWE SPORTS AB has no effect on the direction of Allegheny Technologies i.e., Allegheny Technologies and USWE SPORTS go up and down completely randomly.
Pair Corralation between Allegheny Technologies and USWE SPORTS
Assuming the 90 days horizon Allegheny Technologies is expected to generate 6.94 times less return on investment than USWE SPORTS. But when comparing it to its historical volatility, Allegheny Technologies Incorporated is 1.21 times less risky than USWE SPORTS. It trades about 0.02 of its potential returns per unit of risk. USWE SPORTS AB is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 74.00 in USWE SPORTS AB on November 6, 2024 and sell it today you would earn a total of 11.00 from holding USWE SPORTS AB or generate 14.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Allegheny Technologies Incorpo vs. USWE SPORTS AB
Performance |
| Timeline |
| Allegheny Technologies |
| USWE SPORTS AB |
Allegheny Technologies and USWE SPORTS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allegheny Technologies and USWE SPORTS
The main advantage of trading using opposite Allegheny Technologies and USWE SPORTS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allegheny Technologies position performs unexpectedly, USWE SPORTS 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 USWE SPORTS will offset losses from the drop in USWE SPORTS's long position.| Allegheny Technologies vs. GRENKELEASING Dusseldorf | Allegheny Technologies vs. ALBIS LEASING AG | Allegheny Technologies vs. The Hanover Insurance | Allegheny Technologies vs. HANOVER INSURANCE |
| USWE SPORTS vs. PROSIEBENSAT1 MEDIADR4 | USWE SPORTS vs. GigaMedia | USWE SPORTS vs. ZINC MEDIA GR | USWE SPORTS vs. Fuji Media Holdings |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |