Correlation Between Allianz Technology and CompuGroup Medical
Can any of the company-specific risk be diversified away by investing in both Allianz Technology and CompuGroup Medical 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 CompuGroup Medical 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 CompuGroup Medical AG, you can compare the effects of market volatilities on Allianz Technology and CompuGroup Medical 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 CompuGroup Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allianz Technology and CompuGroup Medical.
Diversification Opportunities for Allianz Technology and CompuGroup Medical
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Allianz and CompuGroup is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Allianz Technology Trust and CompuGroup Medical AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CompuGroup Medical 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 CompuGroup Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CompuGroup Medical has no effect on the direction of Allianz Technology i.e., Allianz Technology and CompuGroup Medical go up and down completely randomly.
Pair Corralation between Allianz Technology and CompuGroup Medical
Assuming the 90 days trading horizon Allianz Technology is expected to generate 1.93 times less return on investment than CompuGroup Medical. But when comparing it to its historical volatility, Allianz Technology Trust is 1.42 times less risky than CompuGroup Medical. It trades about 0.15 of its potential returns per unit of risk. CompuGroup Medical AG is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 1,411 in CompuGroup Medical AG on August 30, 2024 and sell it today you would earn a total of 149.00 from holding CompuGroup Medical AG or generate 10.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Allianz Technology Trust vs. CompuGroup Medical AG
Performance |
| Timeline |
| Allianz Technology Trust |
| CompuGroup Medical |
Allianz Technology and CompuGroup Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allianz Technology and CompuGroup Medical
The main advantage of trading using opposite Allianz Technology and CompuGroup Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allianz Technology position performs unexpectedly, CompuGroup Medical 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 CompuGroup Medical will offset losses from the drop in CompuGroup Medical's long position.| Allianz Technology vs. Toyota Motor Corp | Allianz Technology vs. Lendinvest PLC | Allianz Technology vs. Neometals | Allianz Technology vs. Coor Service Management |
| CompuGroup Medical vs. Lendinvest PLC | CompuGroup Medical vs. Neometals | CompuGroup Medical vs. Albion Technology General | CompuGroup Medical vs. Jupiter Fund Management |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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