Correlation Between Shenguan Holdings and Allient
Can any of the company-specific risk be diversified away by investing in both Shenguan Holdings and Allient 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 Shenguan Holdings and Allient into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shenguan Holdings Group and Allient, you can compare the effects of market volatilities on Shenguan Holdings and Allient 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 Shenguan Holdings with a short position of Allient. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenguan Holdings and Allient.
Diversification Opportunities for Shenguan Holdings and Allient
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Shenguan and Allient is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Shenguan Holdings Group and Allient in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allient and Shenguan Holdings 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 Shenguan Holdings Group are associated (or correlated) with Allient. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allient has no effect on the direction of Shenguan Holdings i.e., Shenguan Holdings and Allient go up and down completely randomly.
Pair Corralation between Shenguan Holdings and Allient
Assuming the 90 days horizon Shenguan Holdings Group is expected to under-perform the Allient. In addition to that, Shenguan Holdings is 1.14 times more volatile than Allient. It trades about -0.13 of its total potential returns per unit of risk. Allient is currently generating about 0.21 per unit of volatility. If you would invest 1,819 in Allient on November 3, 2024 and sell it today you would earn a total of 702.00 from holding Allient or generate 38.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 96.72% |
| Values | Daily Returns |
Shenguan Holdings Group vs. Allient
Performance |
| Timeline |
| Shenguan Holdings |
| Allient |
Shenguan Holdings and Allient Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenguan Holdings and Allient
The main advantage of trading using opposite Shenguan Holdings and Allient positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenguan Holdings position performs unexpectedly, Allient 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 Allient will offset losses from the drop in Allient's long position.| Shenguan Holdings vs. Teleflex Incorporated | Shenguan Holdings vs. Ihuman Inc | Shenguan Holdings vs. Alvotech | Shenguan Holdings vs. Youdao Inc |
| Allient vs. RBC Bearings Incorporated | Allient vs. Park Ohio Holdings | Allient vs. Bridgford Foods | Allient vs. Tyson Foods |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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