Correlation Between Allison and Stratasys
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By analyzing existing cross correlation between Allison Transmission 5875 and Stratasys, you can compare the effects of market volatilities on Allison and Stratasys 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 Allison with a short position of Stratasys. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allison and Stratasys.
Diversification Opportunities for Allison and Stratasys
Very good diversification
The 3 months correlation between Allison and Stratasys is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Allison Transmission 5875 and Stratasys in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stratasys and Allison 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 Allison Transmission 5875 are associated (or correlated) with Stratasys. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stratasys has no effect on the direction of Allison i.e., Allison and Stratasys go up and down completely randomly.
Pair Corralation between Allison and Stratasys
Assuming the 90 days trading horizon Allison Transmission 5875 is expected to generate 0.09 times more return on investment than Stratasys. However, Allison Transmission 5875 is 11.7 times less risky than Stratasys. It trades about -0.29 of its potential returns per unit of risk. Stratasys is currently generating about -0.06 per unit of risk. If you would invest 10,054 in Allison Transmission 5875 on September 26, 2024 and sell it today you would lose (166.00) from holding Allison Transmission 5875 or give up 1.65% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 95.24% |
Values | Daily Returns |
Allison Transmission 5875 vs. Stratasys
Performance |
Timeline |
Allison Transmission 5875 |
Stratasys |
Allison and Stratasys Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Allison and Stratasys
The main advantage of trading using opposite Allison and Stratasys positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allison position performs unexpectedly, Stratasys 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 Stratasys will offset losses from the drop in Stratasys' long position.Allison vs. AMCON Distributing | Allison vs. Marfrig Global Foods | Allison vs. Smith Douglas Homes | Allison vs. Village Super Market |
Stratasys vs. Cricut Inc | Stratasys vs. AGM Group Holdings | Stratasys vs. Key Tronic | Stratasys vs. Identiv |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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