Correlation Between Allianz SE and Old Republic
Can any of the company-specific risk be diversified away by investing in both Allianz SE and Old Republic 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 Old Republic 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 Old Republic International, you can compare the effects of market volatilities on Allianz SE and Old Republic 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 Old Republic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allianz SE and Old Republic.
Diversification Opportunities for Allianz SE and Old Republic
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Allianz and Old is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Allianz SE ADR and Old Republic International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Old Republic Interna 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 Old Republic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Old Republic Interna has no effect on the direction of Allianz SE i.e., Allianz SE and Old Republic go up and down completely randomly.
Pair Corralation between Allianz SE and Old Republic
If you would invest 3,579 in Old Republic International on August 24, 2024 and sell it today you would earn a total of 243.00 from holding Old Republic International or generate 6.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.35% |
| Values | Daily Returns |
Allianz SE ADR vs. Old Republic International
Performance |
| Timeline |
| Allianz SE ADR |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Old Republic Interna |
Allianz SE and Old Republic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allianz SE and Old Republic
The main advantage of trading using opposite Allianz SE and Old Republic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allianz SE position performs unexpectedly, Old Republic 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 Old Republic will offset losses from the drop in Old Republic'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 |
| Old Republic vs. Axa Equitable Holdings | Old Republic vs. American International Group | Old Republic vs. Arch Capital Group | Old Republic 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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