Correlation Between Allegheny Technologies and FDG Electric
Can any of the company-specific risk be diversified away by investing in both Allegheny Technologies and FDG Electric 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 FDG Electric 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 FDG Electric Vehicles, you can compare the effects of market volatilities on Allegheny Technologies and FDG Electric 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 FDG Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allegheny Technologies and FDG Electric.
Diversification Opportunities for Allegheny Technologies and FDG Electric
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Allegheny and FDG is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Allegheny Technologies Incorpo and FDG Electric Vehicles in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FDG Electric Vehicles 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 FDG Electric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FDG Electric Vehicles has no effect on the direction of Allegheny Technologies i.e., Allegheny Technologies and FDG Electric go up and down completely randomly.
Pair Corralation between Allegheny Technologies and FDG Electric
If you would invest 5,351 in Allegheny Technologies Incorporated on September 3, 2024 and sell it today you would earn a total of 666.00 from holding Allegheny Technologies Incorporated or generate 12.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Allegheny Technologies Incorpo vs. FDG Electric Vehicles
Performance |
| Timeline |
| Allegheny Technologies |
| FDG Electric Vehicles |
Allegheny Technologies and FDG Electric Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allegheny Technologies and FDG Electric
The main advantage of trading using opposite Allegheny Technologies and FDG Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allegheny Technologies position performs unexpectedly, FDG Electric 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 FDG Electric will offset losses from the drop in FDG Electric's long position.| Allegheny Technologies vs. Worthington Industries | Allegheny Technologies vs. ESAB Corp | Allegheny Technologies vs. Insteel Industries | Allegheny Technologies vs. Northwest Pipe |
| FDG Electric vs. OppFi Inc | FDG Electric vs. Fortinet | FDG Electric vs. Brera Holdings PLC | FDG Electric vs. MetLife |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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