Correlation Between Allianz Technology and Vitec Software
Can any of the company-specific risk be diversified away by investing in both Allianz Technology and Vitec Software 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 Vitec Software 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 Vitec Software Group, you can compare the effects of market volatilities on Allianz Technology and Vitec Software 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 Vitec Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allianz Technology and Vitec Software.
Diversification Opportunities for Allianz Technology and Vitec Software
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Allianz and Vitec is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Allianz Technology Trust and Vitec Software Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vitec Software Group 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 Vitec Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vitec Software Group has no effect on the direction of Allianz Technology i.e., Allianz Technology and Vitec Software go up and down completely randomly.
Pair Corralation between Allianz Technology and Vitec Software
Assuming the 90 days trading horizon Allianz Technology Trust is expected to generate 0.82 times more return on investment than Vitec Software. However, Allianz Technology Trust is 1.23 times less risky than Vitec Software. It trades about 0.06 of its potential returns per unit of risk. Vitec Software Group is currently generating about -0.03 per unit of risk. If you would invest 35,000 in Allianz Technology Trust on September 1, 2024 and sell it today you would earn a total of 4,750 from holding Allianz Technology Trust or generate 13.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.23% |
| Values | Daily Returns |
Allianz Technology Trust vs. Vitec Software Group
Performance |
| Timeline |
| Allianz Technology Trust |
| Vitec Software Group |
Allianz Technology and Vitec Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allianz Technology and Vitec Software
The main advantage of trading using opposite Allianz Technology and Vitec Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allianz Technology position performs unexpectedly, Vitec Software 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 Vitec Software will offset losses from the drop in Vitec Software's long position.| Allianz Technology vs. Games Workshop Group | Allianz Technology vs. Auto Trader Group | Allianz Technology vs. SANTANDER UK 10 | Allianz Technology vs. Coor Service Management |
| Vitec Software vs. Uniper SE | Vitec Software vs. Mulberry Group PLC | Vitec Software vs. London Security Plc | Vitec Software 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |