Correlation Between Allegheny Technologies and Evolution Gaming
Can any of the company-specific risk be diversified away by investing in both Allegheny Technologies and Evolution Gaming 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 Evolution Gaming 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 Evolution Gaming Group, you can compare the effects of market volatilities on Allegheny Technologies and Evolution Gaming 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 Evolution Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allegheny Technologies and Evolution Gaming.
Diversification Opportunities for Allegheny Technologies and Evolution Gaming
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Allegheny and Evolution is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Allegheny Technologies Incorpo and Evolution Gaming Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Evolution Gaming 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 Evolution Gaming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Evolution Gaming has no effect on the direction of Allegheny Technologies i.e., Allegheny Technologies and Evolution Gaming go up and down completely randomly.
Pair Corralation between Allegheny Technologies and Evolution Gaming
Considering the 90-day investment horizon Allegheny Technologies Incorporated is expected to generate 2.46 times more return on investment than Evolution Gaming. However, Allegheny Technologies is 2.46 times more volatile than Evolution Gaming Group. It trades about -0.05 of its potential returns per unit of risk. Evolution Gaming Group is currently generating about -0.29 per unit of risk. If you would invest 6,322 in Allegheny Technologies Incorporated on August 28, 2024 and sell it today you would lose (307.00) from holding Allegheny Technologies Incorporated or give up 4.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Allegheny Technologies Incorpo vs. Evolution Gaming Group
Performance |
| Timeline |
| Allegheny Technologies |
| Evolution Gaming |
Allegheny Technologies and Evolution Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allegheny Technologies and Evolution Gaming
The main advantage of trading using opposite Allegheny Technologies and Evolution Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allegheny Technologies position performs unexpectedly, Evolution Gaming 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 Evolution Gaming will offset losses from the drop in Evolution Gaming's long position.| Allegheny Technologies vs. Worthington Industries | Allegheny Technologies vs. Haynes International | Allegheny Technologies vs. ESAB Corp | Allegheny Technologies vs. Insteel Industries |
| Evolution Gaming vs. Real Luck Group | Evolution Gaming vs. Betmakers Technology Group | Evolution Gaming vs. Jackpot Digital |
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.
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