Correlation Between Allianz Technology and Octopus Aim
Can any of the company-specific risk be diversified away by investing in both Allianz Technology and Octopus Aim 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 Octopus Aim 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 Octopus Aim Vct, you can compare the effects of market volatilities on Allianz Technology and Octopus Aim 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 Octopus Aim. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allianz Technology and Octopus Aim.
Diversification Opportunities for Allianz Technology and Octopus Aim
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Allianz and Octopus is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Allianz Technology Trust and Octopus Aim Vct in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Octopus Aim Vct 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 Octopus Aim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Octopus Aim Vct has no effect on the direction of Allianz Technology i.e., Allianz Technology and Octopus Aim go up and down completely randomly.
Pair Corralation between Allianz Technology and Octopus Aim
If you would invest 39,300 in Allianz Technology Trust on September 12, 2024 and sell it today you would earn a total of 1,850 from holding Allianz Technology Trust or generate 4.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Allianz Technology Trust vs. Octopus Aim Vct
Performance |
| Timeline |
| Allianz Technology Trust |
| Octopus Aim Vct |
Allianz Technology and Octopus Aim Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allianz Technology and Octopus Aim
The main advantage of trading using opposite Allianz Technology and Octopus Aim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allianz Technology position performs unexpectedly, Octopus Aim 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 Octopus Aim will offset losses from the drop in Octopus Aim's long position.| Allianz Technology vs. Samsung Electronics Co | Allianz Technology vs. Samsung Electronics Co | Allianz Technology vs. Hyundai Motor | Allianz Technology vs. Toyota Motor Corp |
| Octopus Aim vs. Allianz Technology Trust | Octopus Aim vs. Check Point Software | Octopus Aim vs. SMA Solar Technology | Octopus Aim vs. Alfa Financial Software |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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