Correlation Between Allianz SE and American International
Can any of the company-specific risk be diversified away by investing in both Allianz SE and American International 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 Allianz SE and American International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Allianz SE ADR and American International Group, you can compare the effects of market volatilities on Allianz SE and American International 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 Allianz SE with a short position of American International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allianz SE and American International.
Diversification Opportunities for Allianz SE and American International
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Allianz and American is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Allianz SE ADR and American International Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American International and Allianz SE 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 Allianz SE ADR are associated (or correlated) with American International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American International has no effect on the direction of Allianz SE i.e., Allianz SE and American International go up and down completely randomly.
Pair Corralation between Allianz SE and American International
If you would invest 2,379 in Allianz SE ADR on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Allianz SE ADR or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Allianz SE ADR vs. American International Group
Performance |
| Timeline |
| Allianz SE ADR |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| American International |
Allianz SE and American International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allianz SE and American International
The main advantage of trading using opposite Allianz SE and American International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allianz SE position performs unexpectedly, American International 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 American International will offset losses from the drop in American International's long position.| Allianz SE vs. Allianz SE | Allianz SE vs. Muenchener Rueckver Ges | Allianz SE vs. Zurich Insurance Group | Allianz SE vs. Legal General Group |
| American International vs. Axa Equitable Holdings | American International vs. Arch Capital Group | American International vs. Old Republic International | American International vs. Sun Life Financial |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |