Correlation Between Gruppo MutuiOnline and Allianz Technology
Can any of the company-specific risk be diversified away by investing in both Gruppo MutuiOnline 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 Gruppo MutuiOnline and Allianz Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gruppo MutuiOnline SpA and Allianz Technology Trust, you can compare the effects of market volatilities on Gruppo MutuiOnline 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 Gruppo MutuiOnline with a short position of Allianz Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gruppo MutuiOnline and Allianz Technology.
Diversification Opportunities for Gruppo MutuiOnline and Allianz Technology
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Gruppo and Allianz is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Gruppo MutuiOnline SpA 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 Gruppo MutuiOnline 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 Gruppo MutuiOnline SpA 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 Gruppo MutuiOnline i.e., Gruppo MutuiOnline and Allianz Technology go up and down completely randomly.
Pair Corralation between Gruppo MutuiOnline and Allianz Technology
Assuming the 90 days trading horizon Gruppo MutuiOnline is expected to generate 3.42 times less return on investment than Allianz Technology. But when comparing it to its historical volatility, Gruppo MutuiOnline SpA is 1.01 times less risky than Allianz Technology. It trades about 0.04 of its potential returns per unit of risk. Allianz Technology Trust is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 42,300 in Allianz Technology Trust on November 3, 2024 and sell it today you would earn a total of 2,000 from holding Allianz Technology Trust or generate 4.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 45.45% |
| Values | Daily Returns |
Gruppo MutuiOnline SpA vs. Allianz Technology Trust
Performance |
| Timeline |
| Gruppo MutuiOnline SpA |
| Allianz Technology Trust |
Gruppo MutuiOnline and Allianz Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gruppo MutuiOnline and Allianz Technology
The main advantage of trading using opposite Gruppo MutuiOnline and Allianz Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gruppo MutuiOnline 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.| Gruppo MutuiOnline vs. Axway Software SA | Gruppo MutuiOnline vs. Aptitude Software Group | Gruppo MutuiOnline vs. First Majestic Silver | Gruppo MutuiOnline vs. MTI Wireless Edge |
| Allianz Technology vs. Air Products Chemicals | Allianz Technology vs. Gruppo MutuiOnline SpA | Allianz Technology vs. Waste Management | Allianz Technology vs. Amedeo Air Four |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |