Correlation Between Proto Labs and Allegheny Technologies
Can any of the company-specific risk be diversified away by investing in both Proto Labs and Allegheny Technologies 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 Proto Labs and Allegheny Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Proto Labs and Allegheny Technologies Incorporated, you can compare the effects of market volatilities on Proto Labs and Allegheny Technologies 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 Proto Labs with a short position of Allegheny Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Proto Labs and Allegheny Technologies.
Diversification Opportunities for Proto Labs and Allegheny Technologies
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Proto and Allegheny is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Proto Labs and Allegheny Technologies Incorpo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allegheny Technologies and Proto Labs 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 Proto Labs are associated (or correlated) with Allegheny Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allegheny Technologies has no effect on the direction of Proto Labs i.e., Proto Labs and Allegheny Technologies go up and down completely randomly.
Pair Corralation between Proto Labs and Allegheny Technologies
Given the investment horizon of 90 days Proto Labs is expected to generate 0.73 times more return on investment than Allegheny Technologies. However, Proto Labs is 1.37 times less risky than Allegheny Technologies. It trades about 0.19 of its potential returns per unit of risk. Allegheny Technologies Incorporated is currently generating about -0.04 per unit of risk. If you would invest 3,872 in Proto Labs on June 12, 2025 and sell it today you would earn a total of 1,024 from holding Proto Labs or generate 26.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Proto Labs vs. Allegheny Technologies Incorpo
Performance |
| Timeline |
| Proto Labs |
| Allegheny Technologies |
Proto Labs and Allegheny Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Proto Labs and Allegheny Technologies
The main advantage of trading using opposite Proto Labs and Allegheny Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Proto Labs position performs unexpectedly, Allegheny Technologies 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 Allegheny Technologies will offset losses from the drop in Allegheny Technologies' long position.| Proto Labs vs. Mayville Engineering Co | Proto Labs vs. Insteel Industries | Proto Labs vs. Ryerson Holding Corp | Proto Labs vs. Allegheny Technologies Incorporated |
| Allegheny Technologies vs. Carpenter Technology | Allegheny Technologies vs. Worthington Industries | Allegheny Technologies vs. Ryerson Holding Corp | Allegheny Technologies vs. Commercial Metals |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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