Correlation Between Allianz Technology and Evolution Gaming
Can any of the company-specific risk be diversified away by investing in both Allianz Technology and Evolution Gaming 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 Evolution Gaming 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 Evolution Gaming Group, you can compare the effects of market volatilities on Allianz Technology and Evolution Gaming 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 Evolution Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allianz Technology and Evolution Gaming.
Diversification Opportunities for Allianz Technology and Evolution Gaming
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Allianz and Evolution is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Allianz Technology Trust and Evolution Gaming Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Evolution Gaming 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 Evolution Gaming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Evolution Gaming has no effect on the direction of Allianz Technology i.e., Allianz Technology and Evolution Gaming go up and down completely randomly.
Pair Corralation between Allianz Technology and Evolution Gaming
Assuming the 90 days trading horizon Allianz Technology Trust is expected to generate 0.71 times more return on investment than Evolution Gaming. However, Allianz Technology Trust is 1.4 times less risky than Evolution Gaming. It trades about 0.2 of its potential returns per unit of risk. Evolution Gaming Group is currently generating about -0.2 per unit of risk. If you would invest 36,950 in Allianz Technology Trust on October 24, 2024 and sell it today you would earn a total of 6,550 from holding Allianz Technology Trust or generate 17.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Allianz Technology Trust vs. Evolution Gaming Group
Performance |
| Timeline |
| Allianz Technology Trust |
| Evolution Gaming |
Allianz Technology and Evolution Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allianz Technology and Evolution Gaming
The main advantage of trading using opposite Allianz Technology and Evolution Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allianz Technology position performs unexpectedly, Evolution Gaming 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 Evolution Gaming will offset losses from the drop in Evolution Gaming's long position.| Allianz Technology vs. Spotify Technology SA | Allianz Technology vs. Vitec Software Group | Allianz Technology vs. Polar Capital Technology | Allianz Technology vs. Sabien Technology Group |
| Evolution Gaming vs. Allianz Technology Trust | Evolution Gaming vs. Micron Technology | Evolution Gaming vs. Zegona Communications Plc | Evolution Gaming vs. Concurrent Technologies 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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