Correlation Between Allianz Technology and Jardine Matheson

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Allianz Technology and Jardine Matheson 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 Jardine Matheson 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 Jardine Matheson Holdings, you can compare the effects of market volatilities on Allianz Technology and Jardine Matheson 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 Jardine Matheson. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allianz Technology and Jardine Matheson.

Diversification Opportunities for Allianz Technology and Jardine Matheson

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Allianz and Jardine is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Allianz Technology Trust and Jardine Matheson Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jardine Matheson Holdings 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 Jardine Matheson. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jardine Matheson Holdings has no effect on the direction of Allianz Technology i.e., Allianz Technology and Jardine Matheson go up and down completely randomly.

Pair Corralation between Allianz Technology and Jardine Matheson

If you would invest  39,350  in Allianz Technology Trust on September 13, 2024 and sell it today you would earn a total of  2,150  from holding Allianz Technology Trust or generate 5.46% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Allianz Technology Trust  vs.  Jardine Matheson Holdings

 Performance 
       Timeline  
Allianz Technology Trust 

Risk-Adjusted Performance

15 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Allianz Technology Trust are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady technical and fundamental indicators, Allianz Technology exhibited solid returns over the last few months and may actually be approaching a breakup point.
Jardine Matheson Holdings 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Jardine Matheson Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, Jardine Matheson is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Allianz Technology and Jardine Matheson Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Allianz Technology and Jardine Matheson

The main advantage of trading using opposite Allianz Technology and Jardine Matheson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allianz Technology position performs unexpectedly, Jardine Matheson 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 Jardine Matheson will offset losses from the drop in Jardine Matheson's long position.
The idea behind Allianz Technology Trust and Jardine Matheson Holdings pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.

Other Complementary Tools

Watchlist Optimization
Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm
Portfolio Optimization
Compute new portfolio that will generate highest expected return given your specified tolerance for risk
Portfolio Diagnostics
Use generated alerts and portfolio events aggregator to diagnose current holdings
Equity Valuation
Check real value of public entities based on technical and fundamental data
Portfolio Suggestion
Get suggestions outside of your existing asset allocation including your own model portfolios