Correlation Between United Guardian and Allegheny
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By analyzing existing cross correlation between United Guardian and Allegheny Technologies 5875, you can compare the effects of market volatilities on United Guardian and Allegheny 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 United Guardian with a short position of Allegheny. Check out your portfolio center. Please also check ongoing floating volatility patterns of United Guardian and Allegheny.
Diversification Opportunities for United Guardian and Allegheny
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between United and Allegheny is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding United Guardian and Allegheny Technologies 5875 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allegheny Technologies and United Guardian 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 United Guardian are associated (or correlated) with Allegheny. 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 United Guardian i.e., United Guardian and Allegheny go up and down completely randomly.
Pair Corralation between United Guardian and Allegheny
Allowing for the 90-day total investment horizon United Guardian is expected to under-perform the Allegheny. In addition to that, United Guardian is 8.63 times more volatile than Allegheny Technologies 5875. It trades about -0.33 of its total potential returns per unit of risk. Allegheny Technologies 5875 is currently generating about -0.14 per unit of volatility. If you would invest 9,949 in Allegheny Technologies 5875 on September 5, 2024 and sell it today you would lose (107.00) from holding Allegheny Technologies 5875 or give up 1.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 90.48% |
| Values | Daily Returns |
United Guardian vs. Allegheny Technologies 5875
Performance |
| Timeline |
| United Guardian |
| Allegheny Technologies |
United Guardian and Allegheny Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with United Guardian and Allegheny
The main advantage of trading using opposite United Guardian and Allegheny positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if United Guardian position performs unexpectedly, Allegheny 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 will offset losses from the drop in Allegheny's long position.| United Guardian vs. Utah Medical Products | United Guardian vs. Union Bankshares | United Guardian vs. Psychemedics | United Guardian vs. Unity Bancorp |
| Allegheny vs. The Travelers Companies | Allegheny vs. GE Aerospace | Allegheny vs. Walmart | Allegheny vs. Pfizer Inc |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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