Correlation Between Allegheny Technologies and Haynes International
Can any of the company-specific risk be diversified away by investing in both Allegheny Technologies and Haynes International 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 Haynes International 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 Haynes International, you can compare the effects of market volatilities on Allegheny Technologies and Haynes International 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 Haynes International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allegheny Technologies and Haynes International.
Diversification Opportunities for Allegheny Technologies and Haynes International
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Allegheny and Haynes is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Allegheny Technologies Incorpo and Haynes International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haynes International 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 Haynes International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haynes International has no effect on the direction of Allegheny Technologies i.e., Allegheny Technologies and Haynes International go up and down completely randomly.
Pair Corralation between Allegheny Technologies and Haynes International
Considering the 90-day investment horizon Allegheny Technologies Incorporated is expected to under-perform the Haynes International. In addition to that, Allegheny Technologies is 13.39 times more volatile than Haynes International. It trades about -0.09 of its total potential returns per unit of risk. Haynes International is currently generating about 0.17 per unit of volatility. If you would invest 6,042 in Haynes International on August 23, 2024 and sell it today you would earn a total of 57.00 from holding Haynes International or generate 0.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Allegheny Technologies Incorpo vs. Haynes International
Performance |
| Timeline |
| Allegheny Technologies |
| Haynes International |
Allegheny Technologies and Haynes International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allegheny Technologies and Haynes International
The main advantage of trading using opposite Allegheny Technologies and Haynes International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allegheny Technologies position performs unexpectedly, Haynes International 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 Haynes International will offset losses from the drop in Haynes International's long position.| Allegheny Technologies vs. Worthington Industries | Allegheny Technologies vs. Haynes International | Allegheny Technologies vs. ESAB Corp | Allegheny Technologies vs. Insteel Industries |
| Haynes International vs. Insteel Industries | Haynes International vs. Mayville Engineering Co | Haynes International vs. Gulf Island Fabrication | Haynes International vs. ESAB Corp |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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