Correlation Between Allegheny Technologies and Accsys Technologies
Can any of the company-specific risk be diversified away by investing in both Allegheny Technologies and Accsys Technologies 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 Accsys Technologies 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 Accsys Technologies PLC, you can compare the effects of market volatilities on Allegheny Technologies and Accsys Technologies 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 Accsys Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allegheny Technologies and Accsys Technologies.
Diversification Opportunities for Allegheny Technologies and Accsys Technologies
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Allegheny and Accsys is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Allegheny Technologies Incorpo and Accsys Technologies PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accsys Technologies PLC 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 Accsys Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Accsys Technologies PLC has no effect on the direction of Allegheny Technologies i.e., Allegheny Technologies and Accsys Technologies go up and down completely randomly.
Pair Corralation between Allegheny Technologies and Accsys Technologies
Considering the 90-day investment horizon Allegheny Technologies Incorporated is expected to generate 1.8 times more return on investment than Accsys Technologies. However, Allegheny Technologies is 1.8 times more volatile than Accsys Technologies PLC. It trades about -0.06 of its potential returns per unit of risk. Accsys Technologies PLC is currently generating about -0.12 per unit of risk. If you would invest 6,615 in Allegheny Technologies Incorporated on August 25, 2024 and sell it today you would lose (685.00) from holding Allegheny Technologies Incorporated or give up 10.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Allegheny Technologies Incorpo vs. Accsys Technologies PLC
Performance |
| Timeline |
| Allegheny Technologies |
| Accsys Technologies PLC |
Allegheny Technologies and Accsys Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allegheny Technologies and Accsys Technologies
The main advantage of trading using opposite Allegheny Technologies and Accsys Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allegheny Technologies position performs unexpectedly, Accsys Technologies 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 Accsys Technologies will offset losses from the drop in Accsys Technologies' long position.| Allegheny Technologies vs. Worthington Industries | Allegheny Technologies vs. Haynes International | Allegheny Technologies vs. ESAB Corp | Allegheny Technologies vs. Insteel Industries |
| Accsys Technologies vs. Turning Point Brands | Accsys Technologies vs. Constellation Brands Class | Accsys Technologies vs. Allegheny Technologies Incorporated | Accsys Technologies vs. Japan Tobacco ADR |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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