Correlation Between Allegheny Technologies and SANOK RUBBER

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

By analyzing existing cross correlation between Allegheny Technologies Incorporated and SANOK RUBBER ZY, you can compare the effects of market volatilities on Allegheny Technologies and SANOK RUBBER 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 Allegheny Technologies with a short position of SANOK RUBBER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allegheny Technologies and SANOK RUBBER.

Diversification Opportunities for Allegheny Technologies and SANOK RUBBER

0.8

Correlation Coefficient

Allegheny Technologies  SANOK RUBBER

Very poor diversification

The 3 months correlation between Allegheny and SANOK is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Allegheny Technologies Incorpo and SANOK RUBBER ZY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SANOK RUBBER ZY and Allegheny Technologies 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 Allegheny Technologies Incorporated are associated (or correlated) with SANOK RUBBER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SANOK RUBBER ZY has no effect on the direction of Allegheny Technologies i.e., Allegheny Technologies and SANOK RUBBER go up and down completely randomly.

Pair Corralation between Allegheny Technologies and SANOK RUBBER

Assuming the 90 days trading horizon Allegheny Technologies is expected to generate 31.47 times less return on investment than SANOK RUBBER. But when comparing it to its historical volatility, Allegheny Technologies Incorporated is 1.66 times less risky than SANOK RUBBER. It trades about 0.0 of its potential returns per unit of risk. SANOK RUBBER ZY is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  494.00  in SANOK RUBBER ZY on April 6, 2025 and sell it today you would earn a total of  16.00  from holding SANOK RUBBER ZY or generate 3.24% return on investment over 90 days.

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

Allegheny Technologies Incorpo  vs.  SANOK RUBBER ZY

Allegheny Technologies

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Allegheny Technologies Incorporated are ranked lower than 22 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile fundamental indicators, Allegheny Technologies unveiled solid returns over the last few months and may actually be approaching a breakup point.

SANOK RUBBER ZY

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in SANOK RUBBER ZY are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, SANOK RUBBER may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Allegheny Technologies and SANOK RUBBER

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

The idea behind Allegheny Technologies Incorporated and SANOK RUBBER ZY 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.

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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.