Correlation Between Allianz Technology and UNIQA Insurance
Can any of the company-specific risk be diversified away by investing in both Allianz Technology and UNIQA Insurance 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 Technology and UNIQA Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Allianz Technology Trust and UNIQA Insurance Group, you can compare the effects of market volatilities on Allianz Technology and UNIQA Insurance 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 Technology with a short position of UNIQA Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allianz Technology and UNIQA Insurance.
Diversification Opportunities for Allianz Technology and UNIQA Insurance
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Allianz and UNIQA is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Allianz Technology Trust and UNIQA Insurance Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UNIQA Insurance Group and Allianz Technology 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 Technology Trust are associated (or correlated) with UNIQA Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UNIQA Insurance Group has no effect on the direction of Allianz Technology i.e., Allianz Technology and UNIQA Insurance go up and down completely randomly.
Pair Corralation between Allianz Technology and UNIQA Insurance
Assuming the 90 days trading horizon Allianz Technology Trust is expected to generate 2.24 times more return on investment than UNIQA Insurance. However, Allianz Technology is 2.24 times more volatile than UNIQA Insurance Group. It trades about 0.08 of its potential returns per unit of risk. UNIQA Insurance Group is currently generating about 0.05 per unit of risk. If you would invest 21,350 in Allianz Technology Trust on October 16, 2024 and sell it today you would earn a total of 20,200 from holding Allianz Technology Trust or generate 94.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.2% |
| Values | Daily Returns |
Allianz Technology Trust vs. UNIQA Insurance Group
Performance |
| Timeline |
| Allianz Technology Trust |
| UNIQA Insurance Group |
Allianz Technology and UNIQA Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allianz Technology and UNIQA Insurance
The main advantage of trading using opposite Allianz Technology and UNIQA Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allianz Technology position performs unexpectedly, UNIQA Insurance 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 UNIQA Insurance will offset losses from the drop in UNIQA Insurance's long position.| Allianz Technology vs. Capital Drilling | Allianz Technology vs. Jupiter Fund Management | Allianz Technology vs. Bankers Investment Trust | Allianz Technology vs. Vitec Software Group |
| UNIQA Insurance vs. Zegona Communications Plc | UNIQA Insurance vs. Vulcan Materials Co | UNIQA Insurance vs. Verizon Communications | UNIQA Insurance vs. Spirent Communications plc |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Global Correlations Find global opportunities by holding instruments from different markets |