Correlation Between Allianz Technology and Deutsche Post
Can any of the company-specific risk be diversified away by investing in both Allianz Technology and Deutsche Post 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 Deutsche Post 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 Deutsche Post AG, you can compare the effects of market volatilities on Allianz Technology and Deutsche Post 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 Deutsche Post. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allianz Technology and Deutsche Post.
Diversification Opportunities for Allianz Technology and Deutsche Post
-0.87 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Allianz and Deutsche is -0.87. Overlapping area represents the amount of risk that can be diversified away by holding Allianz Technology Trust and Deutsche Post AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Deutsche Post AG 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 Deutsche Post. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Deutsche Post AG has no effect on the direction of Allianz Technology i.e., Allianz Technology and Deutsche Post go up and down completely randomly.
Pair Corralation between Allianz Technology and Deutsche Post
Assuming the 90 days trading horizon Allianz Technology Trust is expected to generate 1.28 times more return on investment than Deutsche Post. However, Allianz Technology is 1.28 times more volatile than Deutsche Post AG. It trades about 0.07 of its potential returns per unit of risk. Deutsche Post AG is currently generating about 0.01 per unit of risk. If you would invest 22,050 in Allianz Technology Trust on September 3, 2024 and sell it today you would earn a total of 17,700 from holding Allianz Technology Trust or generate 80.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Allianz Technology Trust vs. Deutsche Post AG
Performance |
| Timeline |
| Allianz Technology Trust |
| Deutsche Post AG |
Allianz Technology and Deutsche Post Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allianz Technology and Deutsche Post
The main advantage of trading using opposite Allianz Technology and Deutsche Post positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allianz Technology position performs unexpectedly, Deutsche Post 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 Deutsche Post will offset losses from the drop in Deutsche Post's long position.| Allianz Technology vs. Wheaton Precious Metals | Allianz Technology vs. Silvercorp Metals | Allianz Technology vs. Air Products Chemicals | Allianz Technology vs. Melia Hotels |
| Deutsche Post vs. Catalyst Media Group | Deutsche Post vs. CATLIN GROUP | Deutsche Post vs. RTW Venture Fund | Deutsche Post vs. Secure Property Development |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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