Correlation Between Allegheny Technologies and FTAC Emerald
Can any of the company-specific risk be diversified away by investing in both Allegheny Technologies and FTAC Emerald 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 FTAC Emerald 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 FTAC Emerald Acquisition, you can compare the effects of market volatilities on Allegheny Technologies and FTAC Emerald 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 FTAC Emerald. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allegheny Technologies and FTAC Emerald.
Diversification Opportunities for Allegheny Technologies and FTAC Emerald
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Allegheny and FTAC is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Allegheny Technologies Incorpo and FTAC Emerald Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FTAC Emerald Acquisition 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 FTAC Emerald. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FTAC Emerald Acquisition has no effect on the direction of Allegheny Technologies i.e., Allegheny Technologies and FTAC Emerald go up and down completely randomly.
Pair Corralation between Allegheny Technologies and FTAC Emerald
Considering the 90-day investment horizon Allegheny Technologies is expected to generate 13.62 times less return on investment than FTAC Emerald. But when comparing it to its historical volatility, Allegheny Technologies Incorporated is 12.66 times less risky than FTAC Emerald. It trades about 0.31 of its potential returns per unit of risk. FTAC Emerald Acquisition is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 18.00 in FTAC Emerald Acquisition on September 1, 2024 and sell it today you would earn a total of 52.00 from holding FTAC Emerald Acquisition or generate 288.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Allegheny Technologies Incorpo vs. FTAC Emerald Acquisition
Performance |
| Timeline |
| Allegheny Technologies |
| FTAC Emerald Acquisition |
Allegheny Technologies and FTAC Emerald Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allegheny Technologies and FTAC Emerald
The main advantage of trading using opposite Allegheny Technologies and FTAC Emerald positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allegheny Technologies position performs unexpectedly, FTAC Emerald 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 FTAC Emerald will offset losses from the drop in FTAC Emerald's long position.| Allegheny Technologies vs. ESAB Corp | Allegheny Technologies vs. Insteel Industries | Allegheny Technologies vs. Northwest Pipe | Allegheny Technologies vs. Carpenter Technology |
| FTAC Emerald vs. ServiceNow | FTAC Emerald vs. CECO Environmental Corp | FTAC Emerald vs. Tianjin Capital Environmental | FTAC Emerald vs. Allegheny Technologies Incorporated |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |