Correlation Between Allianz SE and Herman Miller
Can any of the company-specific risk be diversified away by investing in both Allianz SE and Herman Miller 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 Herman Miller into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Allianz SE and Herman Miller, you can compare the effects of market volatilities on Allianz SE and Herman Miller 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 Herman Miller. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allianz SE and Herman Miller.
Diversification Opportunities for Allianz SE and Herman Miller
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Allianz and Herman is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Allianz SE and Herman Miller in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Herman Miller 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 Herman Miller. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Herman Miller has no effect on the direction of Allianz SE i.e., Allianz SE and Herman Miller go up and down completely randomly.
Pair Corralation between Allianz SE and Herman Miller
Assuming the 90 days horizon Allianz SE is expected to generate 1.06 times less return on investment than Herman Miller. But when comparing it to its historical volatility, Allianz SE is 2.89 times less risky than Herman Miller. It trades about 0.1 of its potential returns per unit of risk. Herman Miller is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,714 in Herman Miller on September 3, 2024 and sell it today you would earn a total of 666.00 from holding Herman Miller or generate 38.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Allianz SE vs. Herman Miller
Performance |
| Timeline |
| Allianz SE |
| Herman Miller |
Allianz SE and Herman Miller Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allianz SE and Herman Miller
The main advantage of trading using opposite Allianz SE and Herman Miller positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allianz SE position performs unexpectedly, Herman Miller 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 Herman Miller will offset losses from the drop in Herman Miller's long position.| Allianz SE vs. Datang International Power | Allianz SE vs. Merit Medical Systems | Allianz SE vs. Information Services International Dentsu | Allianz SE vs. PRECISION DRILLING P |
| Herman Miller vs. SERI INDUSTRIAL EO | Herman Miller vs. Meiko Electronics Co | Herman Miller vs. GALENA MINING LTD | Herman Miller vs. Zijin Mining Group |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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