Correlation Between Allianz Technology and Alfa Financial
Can any of the company-specific risk be diversified away by investing in both Allianz Technology and Alfa Financial 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 Alfa Financial 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 Alfa Financial Software, you can compare the effects of market volatilities on Allianz Technology and Alfa Financial 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 Alfa Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allianz Technology and Alfa Financial.
Diversification Opportunities for Allianz Technology and Alfa Financial
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Allianz and Alfa is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Allianz Technology Trust and Alfa Financial Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alfa Financial Software 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 Alfa Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alfa Financial Software has no effect on the direction of Allianz Technology i.e., Allianz Technology and Alfa Financial go up and down completely randomly.
Pair Corralation between Allianz Technology and Alfa Financial
Assuming the 90 days trading horizon Allianz Technology Trust is expected to generate 0.79 times more return on investment than Alfa Financial. However, Allianz Technology Trust is 1.27 times less risky than Alfa Financial. It trades about 0.16 of its potential returns per unit of risk. Alfa Financial Software is currently generating about -0.14 per unit of risk. If you would invest 39,700 in Allianz Technology Trust on October 22, 2024 and sell it today you would earn a total of 3,200 from holding Allianz Technology Trust or generate 8.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Allianz Technology Trust vs. Alfa Financial Software
Performance |
| Timeline |
| Allianz Technology Trust |
| Alfa Financial Software |
Allianz Technology and Alfa Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allianz Technology and Alfa Financial
The main advantage of trading using opposite Allianz Technology and Alfa Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allianz Technology position performs unexpectedly, Alfa Financial 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 Alfa Financial will offset losses from the drop in Alfa Financial's long position.| Allianz Technology vs. Samsung Electronics Co | Allianz Technology vs. Samsung Electronics Co | Allianz Technology vs. Toyota Motor Corp | Allianz Technology vs. State Bank of |
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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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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