Correlation Between Allianz Technology and Futura Medical
Can any of the company-specific risk be diversified away by investing in both Allianz Technology and Futura 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 Futura 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 Futura Medical, you can compare the effects of market volatilities on Allianz Technology and Futura 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 Futura Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allianz Technology and Futura Medical.
Diversification Opportunities for Allianz Technology and Futura Medical
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Allianz and Futura is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Allianz Technology Trust and Futura Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Futura 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 Futura Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Futura Medical has no effect on the direction of Allianz Technology i.e., Allianz Technology and Futura Medical go up and down completely randomly.
Pair Corralation between Allianz Technology and Futura Medical
Assuming the 90 days trading horizon Allianz Technology Trust is expected to generate 1.24 times more return on investment than Futura Medical. However, Allianz Technology is 1.24 times more volatile than Futura Medical. It trades about 0.07 of its potential returns per unit of risk. Futura Medical is currently generating about -0.44 per unit of risk. If you would invest 41,500 in Allianz Technology Trust on October 12, 2024 and sell it today you would earn a total of 600.00 from holding Allianz Technology Trust or generate 1.45% 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. Futura Medical
Performance |
| Timeline |
| Allianz Technology Trust |
| Futura Medical |
Allianz Technology and Futura Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allianz Technology and Futura Medical
The main advantage of trading using opposite Allianz Technology and Futura Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allianz Technology position performs unexpectedly, Futura 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 Futura Medical will offset losses from the drop in Futura Medical's long position.| Allianz Technology vs. Futura Medical | Allianz Technology vs. Clean Power Hydrogen | Allianz Technology vs. Iron Mountain | Allianz Technology vs. United States Steel |
| Futura Medical vs. Omega Healthcare Investors | Futura Medical vs. Allianz Technology Trust | Futura Medical vs. Oxford Technology 2 | Futura Medical vs. Vitec Software Group |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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