Correlation Between Allegheny Technologies and Eshallgo
Can any of the company-specific risk be diversified away by investing in both Allegheny Technologies and Eshallgo 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 Eshallgo 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 Eshallgo Class A, you can compare the effects of market volatilities on Allegheny Technologies and Eshallgo 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 Eshallgo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allegheny Technologies and Eshallgo.
Diversification Opportunities for Allegheny Technologies and Eshallgo
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Allegheny and Eshallgo is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Allegheny Technologies Incorpo and Eshallgo Class A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eshallgo Class A 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 Eshallgo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eshallgo Class A has no effect on the direction of Allegheny Technologies i.e., Allegheny Technologies and Eshallgo go up and down completely randomly.
Pair Corralation between Allegheny Technologies and Eshallgo
Considering the 90-day investment horizon Allegheny Technologies Incorporated is expected to under-perform the Eshallgo. In addition to that, Allegheny Technologies is 1.07 times more volatile than Eshallgo Class A. It trades about -0.34 of its total potential returns per unit of risk. Eshallgo Class A is currently generating about 0.03 per unit of volatility. If you would invest 109.00 in Eshallgo Class A on December 8, 2024 and sell it today you would earn a total of 1.00 from holding Eshallgo Class A or generate 0.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Allegheny Technologies Incorpo vs. Eshallgo Class A
Performance |
| Timeline |
| Allegheny Technologies |
| Eshallgo Class A |
Allegheny Technologies and Eshallgo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allegheny Technologies and Eshallgo
The main advantage of trading using opposite Allegheny Technologies and Eshallgo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allegheny Technologies position performs unexpectedly, Eshallgo 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 Eshallgo will offset losses from the drop in Eshallgo's long position.| Allegheny Technologies vs. Worthington Industries | ||
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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 CEOs Directory module to screen CEOs from public companies around the world.
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