Correlation Between Allianz Technology and Elmos Semiconductor
Can any of the company-specific risk be diversified away by investing in both Allianz Technology and Elmos Semiconductor 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 Elmos Semiconductor 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 Elmos Semiconductor SE, you can compare the effects of market volatilities on Allianz Technology and Elmos Semiconductor 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 Elmos Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allianz Technology and Elmos Semiconductor.
Diversification Opportunities for Allianz Technology and Elmos Semiconductor
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Allianz and Elmos is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Allianz Technology Trust and Elmos Semiconductor SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elmos Semiconductor 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 Elmos Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elmos Semiconductor has no effect on the direction of Allianz Technology i.e., Allianz Technology and Elmos Semiconductor go up and down completely randomly.
Pair Corralation between Allianz Technology and Elmos Semiconductor
Assuming the 90 days trading horizon Allianz Technology is expected to generate 1.28 times less return on investment than Elmos Semiconductor. But when comparing it to its historical volatility, Allianz Technology Trust is 2.42 times less risky than Elmos Semiconductor. It trades about 0.15 of its potential returns per unit of risk. Elmos Semiconductor SE is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 5,810 in Elmos Semiconductor SE on August 30, 2024 and sell it today you would earn a total of 320.00 from holding Elmos Semiconductor SE or generate 5.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Allianz Technology Trust vs. Elmos Semiconductor SE
Performance |
| Timeline |
| Allianz Technology Trust |
| Elmos Semiconductor |
Allianz Technology and Elmos Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allianz Technology and Elmos Semiconductor
The main advantage of trading using opposite Allianz Technology and Elmos Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allianz Technology position performs unexpectedly, Elmos Semiconductor 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 Elmos Semiconductor will offset losses from the drop in Elmos Semiconductor's long position.| Allianz Technology vs. Toyota Motor Corp | Allianz Technology vs. Lendinvest PLC | Allianz Technology vs. Neometals | Allianz Technology vs. Coor Service Management |
| Elmos Semiconductor vs. Lendinvest PLC | Elmos Semiconductor vs. Neometals | Elmos Semiconductor vs. Albion Technology General | Elmos Semiconductor 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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