Correlation Between Allegheny Technologies and China International
Can any of the company-specific risk be diversified away by investing in both Allegheny Technologies and China International 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 China International 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 China International Marine, you can compare the effects of market volatilities on Allegheny Technologies and China International 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 China International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allegheny Technologies and China International.
Diversification Opportunities for Allegheny Technologies and China International
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Allegheny and China is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Allegheny Technologies Incorpo and China International Marine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China International 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 China International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China International has no effect on the direction of Allegheny Technologies i.e., Allegheny Technologies and China International go up and down completely randomly.
Pair Corralation between Allegheny Technologies and China International
Assuming the 90 days horizon Allegheny Technologies is expected to generate 1.27 times less return on investment than China International. But when comparing it to its historical volatility, Allegheny Technologies Incorporated is 2.02 times less risky than China International. It trades about 0.06 of its potential returns per unit of risk. China International Marine is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 40.00 in China International Marine on October 14, 2024 and sell it today you would earn a total of 17.00 from holding China International Marine or generate 42.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Allegheny Technologies Incorpo vs. China International Marine
Performance |
| Timeline |
| Allegheny Technologies |
| China International |
Allegheny Technologies and China International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allegheny Technologies and China International
The main advantage of trading using opposite Allegheny Technologies and China International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allegheny Technologies position performs unexpectedly, China International 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 China International will offset losses from the drop in China International's long position.| Allegheny Technologies vs. Superior Plus Corp | Allegheny Technologies vs. NMI Holdings | Allegheny Technologies vs. SIVERS SEMICONDUCTORS AB | Allegheny Technologies vs. Talanx AG |
| China International vs. Allegheny Technologies Incorporated | China International vs. Superior Plus Corp | China International vs. NMI Holdings | China International vs. SIVERS SEMICONDUCTORS AB |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |