Correlation Between Sino Ocean and Allegheny Technologies
Can any of the company-specific risk be diversified away by investing in both Sino Ocean 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 Sino Ocean and Allegheny Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sino Ocean Group Holding and Allegheny Technologies Incorporated, you can compare the effects of market volatilities on Sino Ocean 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 Sino Ocean with a short position of Allegheny Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sino Ocean and Allegheny Technologies.
Diversification Opportunities for Sino Ocean and Allegheny Technologies
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Sino and Allegheny is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Sino Ocean Group Holding and Allegheny Technologies Incorpo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allegheny Technologies and Sino Ocean 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 Sino Ocean Group Holding 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 Sino Ocean i.e., Sino Ocean and Allegheny Technologies go up and down completely randomly.
Pair Corralation between Sino Ocean and Allegheny Technologies
If you would invest 4.77 in Sino Ocean Group Holding on September 12, 2024 and sell it today you would earn a total of 0.00 from holding Sino Ocean Group Holding or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sino Ocean Group Holding vs. Allegheny Technologies Incorpo
Performance |
| Timeline |
| Sino Ocean Group |
| Allegheny Technologies |
Sino Ocean and Allegheny Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sino Ocean and Allegheny Technologies
The main advantage of trading using opposite Sino Ocean and Allegheny Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sino Ocean 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.| Sino Ocean vs. Allegheny Technologies Incorporated | Sino Ocean vs. CECO Environmental Corp | Sino Ocean vs. Tianjin Capital Environmental | Sino Ocean vs. Shake Shack |
| 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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