Correlation Between Allianz SE and ENSTAR GROUP
Can any of the company-specific risk be diversified away by investing in both Allianz SE and ENSTAR GROUP 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 ENSTAR GROUP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Allianz SE and ENSTAR GROUP LTD, you can compare the effects of market volatilities on Allianz SE and ENSTAR GROUP 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 ENSTAR GROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allianz SE and ENSTAR GROUP.
Diversification Opportunities for Allianz SE and ENSTAR GROUP
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Allianz and ENSTAR is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Allianz SE and ENSTAR GROUP LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ENSTAR GROUP LTD 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 are associated (or correlated) with ENSTAR GROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ENSTAR GROUP LTD has no effect on the direction of Allianz SE i.e., Allianz SE and ENSTAR GROUP go up and down completely randomly.
Pair Corralation between Allianz SE and ENSTAR GROUP
Assuming the 90 days horizon Allianz SE is expected to under-perform the ENSTAR GROUP. But the stock apears to be less risky and, when comparing its historical volatility, Allianz SE is 1.0 times less risky than ENSTAR GROUP. The stock trades about -0.07 of its potential returns per unit of risk. The ENSTAR GROUP LTD is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 30,000 in ENSTAR GROUP LTD on August 25, 2024 and sell it today you would earn a total of 0.00 from holding ENSTAR GROUP LTD or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Allianz SE vs. ENSTAR GROUP LTD
Performance |
| Timeline |
| Allianz SE |
| ENSTAR GROUP LTD |
Allianz SE and ENSTAR GROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allianz SE and ENSTAR GROUP
The main advantage of trading using opposite Allianz SE and ENSTAR GROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allianz SE position performs unexpectedly, ENSTAR GROUP 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 ENSTAR GROUP will offset losses from the drop in ENSTAR GROUP's long position.| Allianz SE vs. UNIVERSAL MUSIC GROUP | Allianz SE vs. PARKEN Sport Entertainment | Allianz SE vs. ULTRA CLEAN HLDGS | Allianz SE vs. GEAR4MUSIC LS 10 |
| ENSTAR GROUP vs. Allianz SE | ENSTAR GROUP vs. ALLIANZ SE UNSPADR | ENSTAR GROUP vs. AXA SA | ENSTAR GROUP vs. ASSGENERALI ADR 12EO |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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