Correlation Between Allient and GameStop Corp

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

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

Diversification Opportunities for Allient and GameStop Corp

-0.1

Correlation Coefficient

Allient  GameStop Corp

Good diversification

The 3 months correlation between Allient and GameStop is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Allient and GameStop Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GameStop 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 GameStop Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GameStop Corp has no effect on the direction of Allient i.e., Allient and GameStop Corp go up and down completely randomly.

Pair Corralation between Allient and GameStop Corp

Given the investment horizon of 90 days Allient is expected to generate 1.53 times more return on investment than GameStop Corp. However, Allient is 1.53 times more volatile than GameStop Corp. It trades about 0.17 of its potential returns per unit of risk. GameStop Corp is currently generating about -0.01 per unit of risk. If you would invest  3,976  in Allient on August 5, 2025 and sell it today you would earn a total of  1,492  from holding Allient or generate 37.53% return on investment over 90 days.

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

Allient  vs.  GameStop Corp

Allient

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Allient are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Allient unveiled solid returns over the last few months and may actually be approaching a breakup point.

GameStop Corp

Risk-Adjusted Performance

Weakest

Over the last 90 days GameStop Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound primary indicators, GameStop Corp is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Allient and GameStop Corp

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

The idea behind Allient and GameStop Corp 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.