Correlation Between Ituran Location and Allient
Can any of the company-specific risk be diversified away by investing in both Ituran Location and Allient 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 Ituran Location and Allient into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ituran Location and and Allient, you can compare the effects of market volatilities on Ituran Location 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 Ituran Location with a short position of Allient. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ituran Location and Allient.
Diversification Opportunities for Ituran Location and Allient
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ituran and Allient is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Ituran Location and and Allient in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allient and Ituran Location 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 Ituran Location and 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 Ituran Location i.e., Ituran Location and Allient go up and down completely randomly.
Pair Corralation between Ituran Location and Allient
Given the investment horizon of 90 days Ituran Location is expected to generate 1.06 times less return on investment than Allient. But when comparing it to its historical volatility, Ituran Location and is 2.11 times less risky than Allient. It trades about 0.19 of its potential returns per unit of risk. Allient is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 4,600 in Allient on September 4, 2025 and sell it today you would earn a total of 818.00 from holding Allient or generate 17.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ituran Location and vs. Allient
Performance |
| Timeline |
| Ituran Location |
| Allient |
Ituran Location and Allient Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ituran Location and Allient
The main advantage of trading using opposite Ituran Location and Allient positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ituran Location 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.| Ituran Location vs. InRetail Per Corp | Ituran Location vs. TCL Electronics Holdings | Ituran Location vs. Renesas Electronics | Ituran Location vs. Jaco Electronics |
| Allient vs. China Clean Energy | Allient vs. World of Wireless | Allient vs. Electreon Wireless | Allient vs. Capital Clean Energy |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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