Correlation Between Allianz Technology and Liontrust Asset
Can any of the company-specific risk be diversified away by investing in both Allianz Technology and Liontrust Asset 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 Liontrust Asset 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 Liontrust Asset Management, you can compare the effects of market volatilities on Allianz Technology and Liontrust Asset 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 Liontrust Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allianz Technology and Liontrust Asset.
Diversification Opportunities for Allianz Technology and Liontrust Asset
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Allianz and Liontrust is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Allianz Technology Trust and Liontrust Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Liontrust Asset Mana 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 Liontrust Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Liontrust Asset Mana has no effect on the direction of Allianz Technology i.e., Allianz Technology and Liontrust Asset go up and down completely randomly.
Pair Corralation between Allianz Technology and Liontrust Asset
Assuming the 90 days trading horizon Allianz Technology Trust is expected to generate 0.45 times more return on investment than Liontrust Asset. However, Allianz Technology Trust is 2.21 times less risky than Liontrust Asset. It trades about 0.14 of its potential returns per unit of risk. Liontrust Asset Management is currently generating about -0.23 per unit of risk. If you would invest 42,200 in Allianz Technology Trust on October 22, 2024 and sell it today you would earn a total of 1,200 from holding Allianz Technology Trust or generate 2.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Allianz Technology Trust vs. Liontrust Asset Management
Performance |
| Timeline |
| Allianz Technology Trust |
| Liontrust Asset Mana |
Allianz Technology and Liontrust Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allianz Technology and Liontrust Asset
The main advantage of trading using opposite Allianz Technology and Liontrust Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allianz Technology position performs unexpectedly, Liontrust Asset 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 Liontrust Asset will offset losses from the drop in Liontrust Asset's long position.| Allianz Technology vs. Samsung Electronics Co | Allianz Technology vs. Samsung Electronics Co | Allianz Technology vs. Toyota Motor Corp | Allianz Technology vs. State Bank of |
| Liontrust Asset vs. Aptitude Software Group | Liontrust Asset vs. Allianz Technology Trust | Liontrust Asset vs. DXC Technology Co | Liontrust Asset vs. Vienna Insurance 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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