Correlation Between Allianz SE and ELMOS SEMICONDUCTOR
Can any of the company-specific risk be diversified away by investing in both Allianz SE and ELMOS SEMICONDUCTOR 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 ELMOS SEMICONDUCTOR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Allianz SE and ELMOS SEMICONDUCTOR, you can compare the effects of market volatilities on Allianz SE and ELMOS SEMICONDUCTOR 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 ELMOS SEMICONDUCTOR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allianz SE and ELMOS SEMICONDUCTOR.
Diversification Opportunities for Allianz SE and ELMOS SEMICONDUCTOR
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Allianz and ELMOS is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Allianz SE and ELMOS SEMICONDUCTOR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ELMOS SEMICONDUCTOR 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 ELMOS SEMICONDUCTOR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ELMOS SEMICONDUCTOR has no effect on the direction of Allianz SE i.e., Allianz SE and ELMOS SEMICONDUCTOR go up and down completely randomly.
Pair Corralation between Allianz SE and ELMOS SEMICONDUCTOR
Assuming the 90 days horizon Allianz SE is expected to generate 0.33 times more return on investment than ELMOS SEMICONDUCTOR. However, Allianz SE is 3.04 times less risky than ELMOS SEMICONDUCTOR. It trades about 0.11 of its potential returns per unit of risk. ELMOS SEMICONDUCTOR is currently generating about 0.02 per unit of risk. If you would invest 18,226 in Allianz SE on September 12, 2024 and sell it today you would earn a total of 11,804 from holding Allianz SE or generate 64.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Allianz SE vs. ELMOS SEMICONDUCTOR
Performance |
| Timeline |
| Allianz SE |
| ELMOS SEMICONDUCTOR |
Allianz SE and ELMOS SEMICONDUCTOR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allianz SE and ELMOS SEMICONDUCTOR
The main advantage of trading using opposite Allianz SE and ELMOS SEMICONDUCTOR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allianz SE position performs unexpectedly, ELMOS SEMICONDUCTOR 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 ELMOS SEMICONDUCTOR will offset losses from the drop in ELMOS SEMICONDUCTOR's long position.| Allianz SE vs. Penta Ocean Construction Co | Allianz SE vs. Sterling Construction | Allianz SE vs. MUTUIONLINE | Allianz SE vs. Granite Construction |
| ELMOS SEMICONDUCTOR vs. Apple Inc | ELMOS SEMICONDUCTOR vs. Apple Inc | ELMOS SEMICONDUCTOR vs. Apple Inc | ELMOS SEMICONDUCTOR vs. Apple Inc |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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