Correlation Between Allianz Technology and Halyk Bank
Can any of the company-specific risk be diversified away by investing in both Allianz Technology and Halyk Bank 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 Halyk Bank 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 Halyk Bank of, you can compare the effects of market volatilities on Allianz Technology and Halyk Bank 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 Halyk Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allianz Technology and Halyk Bank.
Diversification Opportunities for Allianz Technology and Halyk Bank
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Allianz and Halyk is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Allianz Technology Trust and Halyk Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Halyk Bank 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 Halyk Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Halyk Bank has no effect on the direction of Allianz Technology i.e., Allianz Technology and Halyk Bank go up and down completely randomly.
Pair Corralation between Allianz Technology and Halyk Bank
Assuming the 90 days trading horizon Allianz Technology Trust is expected to generate 1.1 times more return on investment than Halyk Bank. However, Allianz Technology is 1.1 times more volatile than Halyk Bank of. It trades about 0.2 of its potential returns per unit of risk. Halyk Bank of is currently generating about 0.15 per unit of risk. If you would invest 34,500 in Allianz Technology Trust on September 12, 2024 and sell it today you would earn a total of 7,000 from holding Allianz Technology Trust or generate 20.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Allianz Technology Trust vs. Halyk Bank of
Performance |
| Timeline |
| Allianz Technology Trust |
| Halyk Bank |
Allianz Technology and Halyk Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allianz Technology and Halyk Bank
The main advantage of trading using opposite Allianz Technology and Halyk Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allianz Technology position performs unexpectedly, Halyk Bank 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 Halyk Bank will offset losses from the drop in Halyk Bank's long position.| Allianz Technology vs. Catalyst Media Group | Allianz Technology vs. CATLIN GROUP | Allianz Technology vs. Tamburi Investment Partners | Allianz Technology vs. Magnora ASA |
| Halyk Bank vs. Aurora Investment Trust | Halyk Bank vs. Metals Exploration Plc | Halyk Bank vs. Central Asia Metals | Halyk Bank vs. Panther Metals 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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