Correlation Between Allegheny Technologies and IFCCN
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By analyzing existing cross correlation between Allegheny Technologies Incorporated and IFCCN 5459 22 SEP 32, you can compare the effects of market volatilities on Allegheny Technologies and IFCCN 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 IFCCN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allegheny Technologies and IFCCN.
Diversification Opportunities for Allegheny Technologies and IFCCN
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Allegheny and IFCCN is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Allegheny Technologies Incorpo and IFCCN 5459 22 SEP 32 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IFCCN 5459 22 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 IFCCN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IFCCN 5459 22 has no effect on the direction of Allegheny Technologies i.e., Allegheny Technologies and IFCCN go up and down completely randomly.
Pair Corralation between Allegheny Technologies and IFCCN
Considering the 90-day investment horizon Allegheny Technologies Incorporated is expected to generate 2.32 times more return on investment than IFCCN. However, Allegheny Technologies is 2.32 times more volatile than IFCCN 5459 22 SEP 32. It trades about 0.28 of its potential returns per unit of risk. IFCCN 5459 22 SEP 32 is currently generating about -0.08 per unit of risk. If you would invest 5,342 in Allegheny Technologies Incorporated on September 2, 2024 and sell it today you would earn a total of 675.00 from holding Allegheny Technologies Incorporated or generate 12.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 38.1% |
| Values | Daily Returns |
Allegheny Technologies Incorpo vs. IFCCN 5459 22 SEP 32
Performance |
| Timeline |
| Allegheny Technologies |
| IFCCN 5459 22 |
Allegheny Technologies and IFCCN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allegheny Technologies and IFCCN
The main advantage of trading using opposite Allegheny Technologies and IFCCN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allegheny Technologies position performs unexpectedly, IFCCN 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 IFCCN will offset losses from the drop in IFCCN's long position.| Allegheny Technologies vs. ESAB Corp | Allegheny Technologies vs. Insteel Industries | Allegheny Technologies vs. Northwest Pipe | Allegheny Technologies vs. Carpenter Technology |
| IFCCN vs. United States Steel | IFCCN vs. Allegheny Technologies Incorporated | IFCCN vs. Pure Cycle | IFCCN vs. PGE 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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