Correlation Between Allegheny Technologies and SmartStop Self
Can any of the company-specific risk be diversified away by investing in both Allegheny Technologies and SmartStop Self 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 SmartStop Self 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 SmartStop Self Storage, you can compare the effects of market volatilities on Allegheny Technologies and SmartStop Self 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 SmartStop Self. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allegheny Technologies and SmartStop Self.
Diversification Opportunities for Allegheny Technologies and SmartStop Self
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Allegheny and SmartStop is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Allegheny Technologies Incorpo and SmartStop Self Storage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SmartStop Self Storage 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 SmartStop Self. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SmartStop Self Storage has no effect on the direction of Allegheny Technologies i.e., Allegheny Technologies and SmartStop Self go up and down completely randomly.
Pair Corralation between Allegheny Technologies and SmartStop Self
Considering the 90-day investment horizon Allegheny Technologies Incorporated is expected to generate 17.47 times more return on investment than SmartStop Self. However, Allegheny Technologies is 17.47 times more volatile than SmartStop Self Storage. It trades about 0.25 of its potential returns per unit of risk. SmartStop Self Storage is currently generating about 0.21 per unit of risk. If you would invest 5,351 in Allegheny Technologies Incorporated on September 5, 2024 and sell it today you would earn a total of 623.00 from holding Allegheny Technologies Incorporated or generate 11.64% 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. SmartStop Self Storage
Performance |
| Timeline |
| Allegheny Technologies |
| SmartStop Self Storage |
Allegheny Technologies and SmartStop Self Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allegheny Technologies and SmartStop Self
The main advantage of trading using opposite Allegheny Technologies and SmartStop Self positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allegheny Technologies position performs unexpectedly, SmartStop Self 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 SmartStop Self will offset losses from the drop in SmartStop Self's long position.| Allegheny Technologies vs. Northwest Pipe | Allegheny Technologies vs. Insteel Industries | Allegheny Technologies vs. ESAB Corp | Allegheny Technologies vs. Gulf Island Fabrication |
| SmartStop Self vs. Palo Alto Networks | SmartStop Self vs. Singular Genomics Systems | SmartStop Self vs. BlackRock | SmartStop Self vs. Deckers Outdoor |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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