Correlation Between Allient and Land Securities

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

By analyzing existing cross correlation between Allient and Land Securities Group, you can compare the effects of market volatilities on Allient and Land Securities 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 Land Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allient and Land Securities.

Diversification Opportunities for Allient and Land Securities

-0.05

Correlation Coefficient

Allient  Land Securities

Good diversification

The 3 months correlation between Allient and Land is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Allient and Land Securities Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Land Securities Group 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 Land Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Land Securities Group has no effect on the direction of Allient i.e., Allient and Land Securities go up and down completely randomly.

Pair Corralation between Allient and Land Securities

Given the investment horizon of 90 days Allient is expected to generate 2.33 times less return on investment than Land Securities. In addition to that, Allient is 1.74 times more volatile than Land Securities Group. It trades about 0.02 of its total potential returns per unit of risk. Land Securities Group is currently generating about 0.06 per unit of volatility. If you would invest  691.00  in Land Securities Group on December 19, 2024 and sell it today you would earn a total of  38.00  from holding Land Securities Group or generate 5.5% return on investment over 90 days.

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

Allient  vs.  Land Securities Group

Allient

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Allient are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Allient is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Land Securities Group

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Land Securities Group are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unsteady fundamental indicators, Land Securities may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Allient and Land Securities

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

The idea behind Allient and Land Securities Group 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.

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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.