Correlation Between Allegheny and United Guardian
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By analyzing existing cross correlation between Allegheny Technologies 5875 and United Guardian, you can compare the effects of market volatilities on Allegheny and United Guardian 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 Allegheny with a short position of United Guardian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allegheny and United Guardian.
Diversification Opportunities for Allegheny and United Guardian
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Allegheny and United is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Allegheny Technologies 5875 and United Guardian in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United Guardian and Allegheny 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 Allegheny Technologies 5875 are associated (or correlated) with United Guardian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United Guardian has no effect on the direction of Allegheny i.e., Allegheny and United Guardian go up and down completely randomly.
Pair Corralation between Allegheny and United Guardian
Assuming the 90 days trading horizon Allegheny Technologies 5875 is expected to generate 0.79 times more return on investment than United Guardian. However, Allegheny Technologies 5875 is 1.26 times less risky than United Guardian. It trades about -0.01 of its potential returns per unit of risk. United Guardian is currently generating about -0.14 per unit of risk. If you would invest 9,993 in Allegheny Technologies 5875 on September 12, 2024 and sell it today you would lose (387.00) from holding Allegheny Technologies 5875 or give up 3.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.31% |
| Values | Daily Returns |
Allegheny Technologies 5875 vs. United Guardian
Performance |
| Timeline |
| Allegheny Technologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| United Guardian |
Allegheny and United Guardian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allegheny and United Guardian
The main advantage of trading using opposite Allegheny and United Guardian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allegheny position performs unexpectedly, United Guardian 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 United Guardian will offset losses from the drop in United Guardian's long position.| Allegheny vs. Live Ventures | Allegheny vs. Summit Hotel Properties | Allegheny vs. Mid Atlantic Home Health | Allegheny vs. RCI Hospitality Holdings |
| United Guardian vs. Utah Medical Products | United Guardian vs. Union Bankshares | United Guardian vs. Psychemedics | United Guardian vs. Unity Bancorp |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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