Correlation Between Allianz Technology and Fidelity National
Can any of the company-specific risk be diversified away by investing in both Allianz Technology and Fidelity National 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 Fidelity National 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 Fidelity National Information, you can compare the effects of market volatilities on Allianz Technology and Fidelity National 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 Fidelity National. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allianz Technology and Fidelity National.
Diversification Opportunities for Allianz Technology and Fidelity National
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Allianz and Fidelity is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Allianz Technology Trust and Fidelity National Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity National 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 Fidelity National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity National has no effect on the direction of Allianz Technology i.e., Allianz Technology and Fidelity National go up and down completely randomly.
Pair Corralation between Allianz Technology and Fidelity National
Assuming the 90 days trading horizon Allianz Technology Trust is expected to generate 1.38 times more return on investment than Fidelity National. However, Allianz Technology is 1.38 times more volatile than Fidelity National Information. It trades about 0.25 of its potential returns per unit of risk. Fidelity National Information is currently generating about -0.18 per unit of risk. If you would invest 36,600 in Allianz Technology Trust on September 2, 2024 and sell it today you would earn a total of 3,150 from holding Allianz Technology Trust or generate 8.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Allianz Technology Trust vs. Fidelity National Information
Performance |
| Timeline |
| Allianz Technology Trust |
| Fidelity National |
Allianz Technology and Fidelity National Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allianz Technology and Fidelity National
The main advantage of trading using opposite Allianz Technology and Fidelity National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allianz Technology position performs unexpectedly, Fidelity National 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 Fidelity National will offset losses from the drop in Fidelity National's long position.| Allianz Technology vs. Toyota Motor Corp | Allianz Technology vs. SoftBank Group Corp | Allianz Technology vs. OTP Bank Nyrt | Allianz Technology vs. Las Vegas Sands |
| Fidelity National vs. Uniper SE | Fidelity National vs. Mulberry Group PLC | Fidelity National vs. London Security Plc | Fidelity National vs. Triad Group 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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