Correlation Between Flagstar Bancorp and Allegheny Technologies
Can any of the company-specific risk be diversified away by investing in both Flagstar Bancorp and Allegheny Technologies 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 Flagstar Bancorp and Allegheny Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Flagstar Bancorp and Allegheny Technologies Incorporated, you can compare the effects of market volatilities on Flagstar Bancorp and Allegheny Technologies 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 Flagstar Bancorp with a short position of Allegheny Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flagstar Bancorp and Allegheny Technologies.
Diversification Opportunities for Flagstar Bancorp and Allegheny Technologies
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Flagstar and Allegheny is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Flagstar Bancorp and Allegheny Technologies Incorpo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allegheny Technologies and Flagstar Bancorp 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 Flagstar Bancorp are associated (or correlated) with Allegheny Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allegheny Technologies has no effect on the direction of Flagstar Bancorp i.e., Flagstar Bancorp and Allegheny Technologies go up and down completely randomly.
Pair Corralation between Flagstar Bancorp and Allegheny Technologies
If you would invest 4,078 in Allegheny Technologies Incorporated on September 4, 2024 and sell it today you would earn a total of 1,892 from holding Allegheny Technologies Incorporated or generate 46.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.34% |
| Values | Daily Returns |
Flagstar Bancorp vs. Allegheny Technologies Incorpo
Performance |
| Timeline |
| Flagstar Bancorp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Allegheny Technologies |
Flagstar Bancorp and Allegheny Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flagstar Bancorp and Allegheny Technologies
The main advantage of trading using opposite Flagstar Bancorp and Allegheny Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flagstar Bancorp position performs unexpectedly, Allegheny Technologies 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 Allegheny Technologies will offset losses from the drop in Allegheny Technologies' long position.| Flagstar Bancorp vs. Hafnia Limited | Flagstar Bancorp vs. TFI International | Flagstar Bancorp vs. Lindblad Expeditions Holdings | Flagstar Bancorp vs. Summit Materials |
| Allegheny Technologies vs. Worthington Industries | Allegheny Technologies vs. ESAB Corp | Allegheny Technologies vs. Insteel Industries | Allegheny Technologies vs. Northwest Pipe |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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