Correlation Between Allianz Technology and Jupiter Fund
Can any of the company-specific risk be diversified away by investing in both Allianz Technology and Jupiter Fund 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 Jupiter Fund 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 Jupiter Fund Management, you can compare the effects of market volatilities on Allianz Technology and Jupiter Fund 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 Jupiter Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allianz Technology and Jupiter Fund.
Diversification Opportunities for Allianz Technology and Jupiter Fund
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Allianz and Jupiter is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Allianz Technology Trust and Jupiter Fund Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jupiter Fund Management 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 Jupiter Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jupiter Fund Management has no effect on the direction of Allianz Technology i.e., Allianz Technology and Jupiter Fund go up and down completely randomly.
Pair Corralation between Allianz Technology and Jupiter Fund
Assuming the 90 days trading horizon Allianz Technology Trust is expected to generate 1.38 times more return on investment than Jupiter Fund. However, Allianz Technology is 1.38 times more volatile than Jupiter Fund Management. It trades about 0.29 of its potential returns per unit of risk. Jupiter Fund Management is currently generating about 0.25 per unit of risk. If you would invest 36,700 in Allianz Technology Trust on September 5, 2024 and sell it today you would earn a total of 3,850 from holding Allianz Technology Trust or generate 10.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Allianz Technology Trust vs. Jupiter Fund Management
Performance |
| Timeline |
| Allianz Technology Trust |
| Jupiter Fund Management |
Allianz Technology and Jupiter Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allianz Technology and Jupiter Fund
The main advantage of trading using opposite Allianz Technology and Jupiter Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allianz Technology position performs unexpectedly, Jupiter Fund 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 Jupiter Fund will offset losses from the drop in Jupiter Fund's long position.| Allianz Technology vs. SupplyMe Capital PLC | Allianz Technology vs. Lloyds Banking Group | Allianz Technology vs. Premier African Minerals | Allianz Technology vs. SANTANDER UK 8 |
| Jupiter Fund vs. SupplyMe Capital PLC | Jupiter Fund vs. Lloyds Banking Group | Jupiter Fund vs. Premier African Minerals | Jupiter Fund vs. SANTANDER UK 8 |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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