Correlation Between Talanx AG and Allegheny Technologies
Can any of the company-specific risk be diversified away by investing in both Talanx AG 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 Talanx AG and Allegheny Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Talanx AG and Allegheny Technologies Incorporated, you can compare the effects of market volatilities on Talanx AG 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 Talanx AG with a short position of Allegheny Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Talanx AG and Allegheny Technologies.
Diversification Opportunities for Talanx AG and Allegheny Technologies
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Talanx and Allegheny is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Talanx AG and Allegheny Technologies Incorpo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allegheny Technologies and Talanx AG 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 Talanx AG 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 Talanx AG i.e., Talanx AG and Allegheny Technologies go up and down completely randomly.
Pair Corralation between Talanx AG and Allegheny Technologies
Assuming the 90 days horizon Talanx AG is expected to generate 0.61 times more return on investment than Allegheny Technologies. However, Talanx AG is 1.63 times less risky than Allegheny Technologies. It trades about 0.11 of its potential returns per unit of risk. Allegheny Technologies Incorporated is currently generating about 0.06 per unit of risk. If you would invest 4,266 in Talanx AG on October 13, 2024 and sell it today you would earn a total of 4,234 from holding Talanx AG or generate 99.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Talanx AG vs. Allegheny Technologies Incorpo
Performance |
| Timeline |
| Talanx AG |
| Allegheny Technologies |
Talanx AG and Allegheny Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Talanx AG and Allegheny Technologies
The main advantage of trading using opposite Talanx AG and Allegheny Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Talanx AG 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.| Talanx AG vs. Hochschild Mining plc | Talanx AG vs. Siemens Healthineers AG | Talanx AG vs. Acadia Healthcare | Talanx AG vs. BRAGG GAMING GRP |
| Allegheny Technologies vs. Superior Plus Corp | Allegheny Technologies vs. NMI Holdings | Allegheny Technologies vs. SIVERS SEMICONDUCTORS AB | Allegheny Technologies vs. Talanx AG |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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