Correlation Between Grieg Seafood and Allianz Technology
Can any of the company-specific risk be diversified away by investing in both Grieg Seafood and Allianz Technology 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 Grieg Seafood and Allianz Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grieg Seafood and Allianz Technology Trust, you can compare the effects of market volatilities on Grieg Seafood and Allianz Technology 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 Grieg Seafood with a short position of Allianz Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grieg Seafood and Allianz Technology.
Diversification Opportunities for Grieg Seafood and Allianz Technology
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Grieg and Allianz is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Grieg Seafood and Allianz Technology Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allianz Technology Trust and Grieg Seafood 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 Grieg Seafood are associated (or correlated) with Allianz Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allianz Technology Trust has no effect on the direction of Grieg Seafood i.e., Grieg Seafood and Allianz Technology go up and down completely randomly.
Pair Corralation between Grieg Seafood and Allianz Technology
Assuming the 90 days trading horizon Grieg Seafood is expected to under-perform the Allianz Technology. In addition to that, Grieg Seafood is 1.33 times more volatile than Allianz Technology Trust. It trades about 0.0 of its total potential returns per unit of risk. Allianz Technology Trust is currently generating about 0.08 per unit of volatility. If you would invest 23,500 in Allianz Technology Trust on October 30, 2024 and sell it today you would earn a total of 18,700 from holding Allianz Technology Trust or generate 79.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Grieg Seafood vs. Allianz Technology Trust
Performance |
| Timeline |
| Grieg Seafood |
| Allianz Technology Trust |
Grieg Seafood and Allianz Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grieg Seafood and Allianz Technology
The main advantage of trading using opposite Grieg Seafood and Allianz Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grieg Seafood position performs unexpectedly, Allianz Technology 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 Allianz Technology will offset losses from the drop in Allianz Technology's long position.| Grieg Seafood vs. First Class Metals | Grieg Seafood vs. MTI Wireless Edge | Grieg Seafood vs. Air Products Chemicals | Grieg Seafood vs. URU Metals |
| Allianz Technology vs. Porvair plc | Allianz Technology vs. Arrow Electronics | Allianz Technology vs. Amedeo Air Four | Allianz Technology vs. Batm Advanced Communications |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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