Correlation Between INTER CARS and Allianz SE
Can any of the company-specific risk be diversified away by investing in both INTER CARS and Allianz SE 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 INTER CARS and Allianz SE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between INTER CARS SA and Allianz SE, you can compare the effects of market volatilities on INTER CARS and Allianz SE 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 INTER CARS with a short position of Allianz SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of INTER CARS and Allianz SE.
Diversification Opportunities for INTER CARS and Allianz SE
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between INTER and Allianz is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding INTER CARS SA and Allianz SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allianz SE and INTER CARS 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 INTER CARS SA are associated (or correlated) with Allianz SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allianz SE has no effect on the direction of INTER CARS i.e., INTER CARS and Allianz SE go up and down completely randomly.
Pair Corralation between INTER CARS and Allianz SE
Assuming the 90 days horizon INTER CARS SA is expected to generate 2.26 times more return on investment than Allianz SE. However, INTER CARS is 2.26 times more volatile than Allianz SE. It trades about 0.25 of its potential returns per unit of risk. Allianz SE is currently generating about 0.05 per unit of risk. If you would invest 10,460 in INTER CARS SA on September 1, 2024 and sell it today you would earn a total of 1,060 from holding INTER CARS SA or generate 10.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
INTER CARS SA vs. Allianz SE
Performance |
| Timeline |
| INTER CARS SA |
| Allianz SE |
INTER CARS and Allianz SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INTER CARS and Allianz SE
The main advantage of trading using opposite INTER CARS and Allianz SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INTER CARS position performs unexpectedly, Allianz SE 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 SE will offset losses from the drop in Allianz SE's long position.| INTER CARS vs. Commercial Vehicle Group | INTER CARS vs. Zijin Mining Group | INTER CARS vs. GEELY AUTOMOBILE | INTER CARS vs. Grupo Carso SAB |
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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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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