Correlation Between Allient and Ingram Micro

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

By analyzing existing cross correlation between Allient and Ingram Micro, you can compare the effects of market volatilities on Allient and Ingram Micro 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 Ingram Micro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allient and Ingram Micro.

Diversification Opportunities for Allient and Ingram Micro

0.0

Correlation Coefficient

Allient  Ingram Micro

Pay attention - limited upside

The 3 months correlation between Allient and Ingram is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Allient and Ingram Micro in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ingram Micro 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 Ingram Micro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ingram Micro has no effect on the direction of Allient i.e., Allient and Ingram Micro go up and down completely randomly.

Pair Corralation between Allient and Ingram Micro

If you would invest  0.00  in Ingram Micro on February 7, 2024 and sell it today you would earn a total of  0.00  from holding Ingram Micro or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	4.55%
Values	Daily Returns

Allient  vs.  Ingram Micro

Allient

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Allient are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Allient may actually be approaching a critical reversion point that can send shares even higher in June 2024.

Ingram Micro

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Ingram Micro has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy primary indicators, Ingram Micro is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Allient and Ingram Micro

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

The idea behind Allient and Ingram Micro 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.