Correlation Between Allianz Technology and MG Plc
Can any of the company-specific risk be diversified away by investing in both Allianz Technology and MG 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 MG 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 MG Plc, you can compare the effects of market volatilities on Allianz Technology and MG 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 MG Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allianz Technology and MG Plc.
Diversification Opportunities for Allianz Technology and MG Plc
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Allianz and MNG is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Allianz Technology Trust and MG Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MG 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 MG Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MG Plc has no effect on the direction of Allianz Technology i.e., Allianz Technology and MG Plc go up and down completely randomly.
Pair Corralation between Allianz Technology and MG Plc
Assuming the 90 days trading horizon Allianz Technology Trust is expected to generate 0.78 times more return on investment than MG Plc. However, Allianz Technology Trust is 1.28 times less risky than MG Plc. It trades about 0.08 of its potential returns per unit of risk. MG Plc is currently generating about 0.03 per unit of risk. If you would invest 22,050 in Allianz Technology Trust on September 3, 2024 and sell it today you would earn a total of 18,150 from holding Allianz Technology Trust or generate 82.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Allianz Technology Trust vs. MG Plc
Performance |
| Timeline |
| Allianz Technology Trust |
| MG Plc |
Allianz Technology and MG Plc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allianz Technology and MG Plc
The main advantage of trading using opposite Allianz Technology and MG Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allianz Technology position performs unexpectedly, MG 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 MG Plc will offset losses from the drop in MG Plc's long position.| Allianz Technology vs. Wheaton Precious Metals | Allianz Technology vs. Silvercorp Metals | Allianz Technology vs. Air Products Chemicals | Allianz Technology vs. Melia Hotels |
| MG Plc vs. Jacquet Metal Service | MG Plc vs. American Homes 4 | MG Plc vs. Adriatic Metals | MG Plc vs. Fortune Brands Home |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |