Correlation Between Argo Group and Allianz Technology
Can any of the company-specific risk be diversified away by investing in both Argo Group and Allianz Technology 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 Argo Group and Allianz Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Argo Group Limited and Allianz Technology Trust, you can compare the effects of market volatilities on Argo Group and Allianz Technology 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 Argo Group with a short position of Allianz Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Argo Group and Allianz Technology.
Diversification Opportunities for Argo Group and Allianz Technology
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Argo and Allianz is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Argo Group Limited and Allianz Technology Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allianz Technology Trust and Argo Group 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 Argo Group Limited are associated (or correlated) with Allianz Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allianz Technology Trust has no effect on the direction of Argo Group i.e., Argo Group and Allianz Technology go up and down completely randomly.
Pair Corralation between Argo Group and Allianz Technology
Assuming the 90 days trading horizon Argo Group Limited is expected to under-perform the Allianz Technology. In addition to that, Argo Group is 2.36 times more volatile than Allianz Technology Trust. It trades about -0.01 of its total potential returns per unit of risk. Allianz Technology Trust is currently generating about 0.08 per unit of volatility. If you would invest 27,900 in Allianz Technology Trust on September 2, 2024 and sell it today you would earn a total of 11,850 from holding Allianz Technology Trust or generate 42.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Argo Group Limited vs. Allianz Technology Trust
Performance |
| Timeline |
| Argo Group Limited |
| Allianz Technology Trust |
Argo Group and Allianz Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Argo Group and Allianz Technology
The main advantage of trading using opposite Argo Group and Allianz Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Argo Group position performs unexpectedly, Allianz Technology 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 Allianz Technology will offset losses from the drop in Allianz Technology's long position.| Argo Group vs. Allianz Technology Trust | Argo Group vs. Uber Technologies | Argo Group vs. UNIQA Insurance Group | Argo Group vs. Lendinvest PLC |
| Allianz Technology vs. Toyota Motor Corp | Allianz Technology vs. SoftBank Group Corp | Allianz Technology vs. OTP Bank Nyrt | Allianz Technology vs. Las Vegas Sands |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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