Correlation Between Stevanato Group and Allegheny Technologies
Can any of the company-specific risk be diversified away by investing in both Stevanato Group 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 Stevanato Group and Allegheny Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stevanato Group SpA and Allegheny Technologies Incorporated, you can compare the effects of market volatilities on Stevanato Group 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 Stevanato Group with a short position of Allegheny Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stevanato Group and Allegheny Technologies.
Diversification Opportunities for Stevanato Group and Allegheny Technologies
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Stevanato and Allegheny is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Stevanato Group SpA and Allegheny Technologies Incorpo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allegheny Technologies and Stevanato Group 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 Stevanato Group SpA 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 Stevanato Group i.e., Stevanato Group and Allegheny Technologies go up and down completely randomly.
Pair Corralation between Stevanato Group and Allegheny Technologies
Given the investment horizon of 90 days Stevanato Group is expected to generate 12.67 times less return on investment than Allegheny Technologies. In addition to that, Stevanato Group is 1.36 times more volatile than Allegheny Technologies Incorporated. It trades about 0.0 of its total potential returns per unit of risk. Allegheny Technologies Incorporated is currently generating about 0.05 per unit of volatility. If you would invest 3,821 in Allegheny Technologies Incorporated on November 27, 2024 and sell it today you would earn a total of 1,982 from holding Allegheny Technologies Incorporated or generate 51.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stevanato Group SpA vs. Allegheny Technologies Incorpo
Performance |
| Timeline |
| Stevanato Group SpA |
| Allegheny Technologies |
Stevanato Group and Allegheny Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stevanato Group and Allegheny Technologies
The main advantage of trading using opposite Stevanato Group and Allegheny Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stevanato Group 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.| Stevanato Group vs. Haemonetics | Stevanato Group vs. Merit Medical Systems | Stevanato Group vs. AngioDynamics | Stevanato Group vs. AptarGroup |
| 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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