Correlation Between MT Bank and Allianz Technology
Can any of the company-specific risk be diversified away by investing in both MT Bank 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 MT Bank and Allianz Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MT Bank Corp and Allianz Technology Trust, you can compare the effects of market volatilities on MT Bank 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 MT Bank with a short position of Allianz Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of MT Bank and Allianz Technology.
Diversification Opportunities for MT Bank and Allianz Technology
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between 0JW2 and Allianz is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding MT Bank Corp 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 MT Bank 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 MT Bank Corp 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 MT Bank i.e., MT Bank and Allianz Technology go up and down completely randomly.
Pair Corralation between MT Bank and Allianz Technology
Assuming the 90 days trading horizon MT Bank Corp is expected to generate 1.04 times more return on investment than Allianz Technology. However, MT Bank is 1.04 times more volatile than Allianz Technology Trust. It trades about 0.1 of its potential returns per unit of risk. Allianz Technology Trust is currently generating about 0.07 per unit of risk. If you would invest 12,147 in MT Bank Corp on August 31, 2024 and sell it today you would earn a total of 9,969 from holding MT Bank Corp or generate 82.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 94.2% |
| Values | Daily Returns |
MT Bank Corp vs. Allianz Technology Trust
Performance |
| Timeline |
| MT Bank Corp |
| Allianz Technology Trust |
MT Bank and Allianz Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MT Bank and Allianz Technology
The main advantage of trading using opposite MT Bank and Allianz Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MT Bank 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.| MT Bank vs. Neometals | MT Bank vs. Coor Service Management | MT Bank vs. Aeorema Communications Plc | MT Bank vs. JLEN Environmental Assets |
| Allianz Technology vs. DXC Technology Co | Allianz Technology vs. International Biotechnology Trust | Allianz Technology vs. Bytes Technology | Allianz Technology vs. Ashtead Technology Holdings |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |