Correlation Between Allient and DigiAsia Corp
Can any of the company-specific risk be diversified away by investing in both Allient and DigiAsia Corp 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 DigiAsia Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Allient and DigiAsia Corp, you can compare the effects of market volatilities on Allient and DigiAsia Corp 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 DigiAsia Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allient and DigiAsia Corp.
Diversification Opportunities for Allient and DigiAsia Corp
-0.88 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Allient and DigiAsia is -0.88. Overlapping area represents the amount of risk that can be diversified away by holding Allient and DigiAsia Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DigiAsia Corp 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 DigiAsia Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DigiAsia Corp has no effect on the direction of Allient i.e., Allient and DigiAsia Corp go up and down completely randomly.
Pair Corralation between Allient and DigiAsia Corp
Given the investment horizon of 90 days Allient is expected to generate 0.25 times more return on investment than DigiAsia Corp. However, Allient is 3.94 times less risky than DigiAsia Corp. It trades about 0.24 of its potential returns per unit of risk. DigiAsia Corp is currently generating about -0.14 per unit of risk. If you would invest 3,172 in Allient on June 4, 2025 and sell it today you would earn a total of 1,322 from holding Allient or generate 41.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Allient vs. DigiAsia Corp
Performance |
| Timeline |
| Allient |
| DigiAsia Corp |
Allient and DigiAsia Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allient and DigiAsia Corp
The main advantage of trading using opposite Allient and DigiAsia Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allient position performs unexpectedly, DigiAsia Corp 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 DigiAsia Corp will offset losses from the drop in DigiAsia Corp's long position.| Allient vs. Serve Robotics Common | Allient vs. Modine Manufacturing | Allient vs. Perella Weinberg Partners | Allient vs. Gentex |
| DigiAsia Corp vs. Ihuman Inc | DigiAsia Corp vs. Vulcan Materials | DigiAsia Corp vs. East Africa Metals | DigiAsia Corp vs. Rambler Metals and |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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