Correlation Between GENERAL and Allient
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By analyzing existing cross correlation between GENERAL ELEC CAP and Allient, you can compare the effects of market volatilities on GENERAL and Allient 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 GENERAL with a short position of Allient. Check out your portfolio center. Please also check ongoing floating volatility patterns of GENERAL and Allient.
Diversification Opportunities for GENERAL and Allient
Very good diversification
The 3 months correlation between GENERAL and Allient is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding GENERAL ELEC CAP and Allient in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allient and GENERAL 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 GENERAL ELEC CAP are associated (or correlated) with Allient. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allient has no effect on the direction of GENERAL i.e., GENERAL and Allient go up and down completely randomly.
Pair Corralation between GENERAL and Allient
Assuming the 90 days trading horizon GENERAL ELEC CAP is expected to generate 0.61 times more return on investment than Allient. However, GENERAL ELEC CAP is 1.65 times less risky than Allient. It trades about 0.02 of its potential returns per unit of risk. Allient is currently generating about 0.01 per unit of risk. If you would invest 9,691 in GENERAL ELEC CAP on September 3, 2024 and sell it today you would earn a total of 204.00 from holding GENERAL ELEC CAP or generate 2.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 47.37% |
| Values | Daily Returns |
GENERAL ELEC CAP vs. Allient
Performance |
| Timeline |
| GENERAL ELEC CAP |
| Allient |
GENERAL and Allient Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GENERAL and Allient
The main advantage of trading using opposite GENERAL and Allient positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GENERAL position performs unexpectedly, Allient 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 Allient will offset losses from the drop in Allient's long position.| GENERAL vs. Morgan Stanley | GENERAL vs. Kite Realty Group | GENERAL vs. Hannon Armstrong Sustainable | GENERAL vs. Sabra Healthcare REIT |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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