Correlation Between Allegheny Technologies and Safe Pro
Can any of the company-specific risk be diversified away by investing in both Allegheny Technologies and Safe Pro 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 Safe Pro 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 Safe Pro Group, you can compare the effects of market volatilities on Allegheny Technologies and Safe Pro 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 Safe Pro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allegheny Technologies and Safe Pro.
Diversification Opportunities for Allegheny Technologies and Safe Pro
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Allegheny and Safe is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Allegheny Technologies Incorpo and Safe Pro Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Safe Pro Group 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 Safe Pro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Safe Pro Group has no effect on the direction of Allegheny Technologies i.e., Allegheny Technologies and Safe Pro go up and down completely randomly.
Pair Corralation between Allegheny Technologies and Safe Pro
Considering the 90-day investment horizon Allegheny Technologies is expected to generate 11.2 times less return on investment than Safe Pro. But when comparing it to its historical volatility, Allegheny Technologies Incorporated is 5.84 times less risky than Safe Pro. It trades about 0.11 of its potential returns per unit of risk. Safe Pro Group is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 237.00 in Safe Pro Group on August 30, 2024 and sell it today you would earn a total of 159.00 from holding Safe Pro Group or generate 67.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Allegheny Technologies Incorpo vs. Safe Pro Group
Performance |
| Timeline |
| Allegheny Technologies |
| Safe Pro Group |
Allegheny Technologies and Safe Pro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allegheny Technologies and Safe Pro
The main advantage of trading using opposite Allegheny Technologies and Safe Pro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allegheny Technologies position performs unexpectedly, Safe Pro 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 Safe Pro will offset losses from the drop in Safe Pro's long position.| Allegheny Technologies vs. Worthington Industries | Allegheny Technologies vs. Haynes International | Allegheny Technologies vs. ESAB Corp | Allegheny Technologies vs. Insteel Industries |
| Safe Pro vs. The Boeing | Safe Pro vs. Curtiss Wright | Safe Pro vs. Ehang Holdings | Safe Pro vs. General Dynamics |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |