Correlation Between Allianz Technology and Hershey
Can any of the company-specific risk be diversified away by investing in both Allianz Technology and Hershey 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 Hershey 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 Hershey Co, you can compare the effects of market volatilities on Allianz Technology and Hershey 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 Hershey. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allianz Technology and Hershey.
Diversification Opportunities for Allianz Technology and Hershey
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Allianz and Hershey is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Allianz Technology Trust and Hershey Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hershey 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 Hershey. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hershey has no effect on the direction of Allianz Technology i.e., Allianz Technology and Hershey go up and down completely randomly.
Pair Corralation between Allianz Technology and Hershey
Assuming the 90 days trading horizon Allianz Technology Trust is expected to generate 1.3 times more return on investment than Hershey. However, Allianz Technology is 1.3 times more volatile than Hershey Co. It trades about -0.02 of its potential returns per unit of risk. Hershey Co is currently generating about -0.34 per unit of risk. If you would invest 43,350 in Allianz Technology Trust on November 6, 2024 and sell it today you would lose (450.00) from holding Allianz Technology Trust or give up 1.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Allianz Technology Trust vs. Hershey Co
Performance |
| Timeline |
| Allianz Technology Trust |
| Hershey |
Allianz Technology and Hershey Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allianz Technology and Hershey
The main advantage of trading using opposite Allianz Technology and Hershey positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allianz Technology position performs unexpectedly, Hershey 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 Hershey will offset losses from the drop in Hershey's long position.| Allianz Technology vs. Hecla Mining Co | Allianz Technology vs. Invesco Physical Silver | Allianz Technology vs. AfriTin Mining | Allianz Technology vs. European Metals Holdings |
| Hershey vs. Coor Service Management | Hershey vs. SBM Offshore NV | Hershey vs. Allianz Technology Trust | Hershey vs. Polar Capital Technology |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |