Correlation Between Allianz Technology and Gfinity PLC
Can any of the company-specific risk be diversified away by investing in both Allianz Technology and Gfinity PLC 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 Gfinity PLC 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 Gfinity PLC, you can compare the effects of market volatilities on Allianz Technology and Gfinity PLC 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 Gfinity PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allianz Technology and Gfinity PLC.
Diversification Opportunities for Allianz Technology and Gfinity PLC
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Allianz and Gfinity is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Allianz Technology Trust and Gfinity PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gfinity PLC 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 Gfinity PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gfinity PLC has no effect on the direction of Allianz Technology i.e., Allianz Technology and Gfinity PLC go up and down completely randomly.
Pair Corralation between Allianz Technology and Gfinity PLC
Assuming the 90 days trading horizon Allianz Technology is expected to generate 11.12 times less return on investment than Gfinity PLC. But when comparing it to its historical volatility, Allianz Technology Trust is 15.01 times less risky than Gfinity PLC. It trades about 0.21 of its potential returns per unit of risk. Gfinity PLC is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 5.50 in Gfinity PLC on October 25, 2024 and sell it today you would earn a total of 1.25 from holding Gfinity PLC or generate 22.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 65.0% |
| Values | Daily Returns |
Allianz Technology Trust vs. Gfinity PLC
Performance |
| Timeline |
| Allianz Technology Trust |
| Gfinity PLC |
Allianz Technology and Gfinity PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allianz Technology and Gfinity PLC
The main advantage of trading using opposite Allianz Technology and Gfinity PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allianz Technology position performs unexpectedly, Gfinity PLC 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 Gfinity PLC will offset losses from the drop in Gfinity PLC's long position.| Allianz Technology vs. Infrastrutture Wireless Italiane | Allianz Technology vs. Fonix Mobile plc | Allianz Technology vs. Verizon Communications | Allianz Technology vs. Zegona Communications Plc |
| Gfinity PLC vs. Allianz Technology Trust | Gfinity PLC vs. Sealed Air Corp | Gfinity PLC vs. Ryanair Holdings plc | Gfinity PLC vs. SMA Solar Technology |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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