Correlation Between Allient and Gaxosai

Can any of the company-specific risk be diversified away by investing in both Allient and Gaxosai 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 Allient and Gaxosai into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Allient and Gaxosai, you can compare the effects of market volatilities on Allient and Gaxosai 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 Allient with a short position of Gaxosai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allient and Gaxosai.

Diversification Opportunities for Allient and Gaxosai

0.13

Correlation Coefficient

Allient  Gaxosai

Average diversification

The 3 months correlation between Allient and Gaxosai is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Allient and Gaxosai in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gaxosai and Allient 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 Allient are associated (or correlated) with Gaxosai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gaxosai has no effect on the direction of Allient i.e., Allient and Gaxosai go up and down completely randomly.

Pair Corralation between Allient and Gaxosai

Given the investment horizon of 90 days Allient is expected to generate 0.39 times more return on investment than Gaxosai. However, Allient is 2.55 times less risky than Gaxosai. It trades about 0.0 of its potential returns per unit of risk. Gaxosai is currently generating about -0.15 per unit of risk. If you would invest  2,398  in Allient on December 29, 2024 and sell it today you would lose (71.00) from holding Allient or give up 2.96% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Allient  vs.  Gaxosai

Allient

Risk-Adjusted Performance

Very Weak

Over the last 90 days Allient has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Allient is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Gaxosai

Risk-Adjusted Performance

Very Weak

Over the last 90 days Gaxosai has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in April 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Allient and Gaxosai

The main advantage of trading using opposite Allient and Gaxosai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allient position performs unexpectedly, Gaxosai 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 Gaxosai will offset losses from the drop in Gaxosai's long position.

The idea behind Allient and Gaxosai pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.