Correlation Between Allianz Technology and OneSavings Bank
Can any of the company-specific risk be diversified away by investing in both Allianz Technology and OneSavings Bank 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 OneSavings Bank 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 OneSavings Bank PLC, you can compare the effects of market volatilities on Allianz Technology and OneSavings Bank 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 OneSavings Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allianz Technology and OneSavings Bank.
Diversification Opportunities for Allianz Technology and OneSavings Bank
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Allianz and OneSavings is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Allianz Technology Trust and OneSavings Bank PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OneSavings Bank 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 OneSavings Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OneSavings Bank PLC has no effect on the direction of Allianz Technology i.e., Allianz Technology and OneSavings Bank go up and down completely randomly.
Pair Corralation between Allianz Technology and OneSavings Bank
Assuming the 90 days trading horizon Allianz Technology Trust is expected to generate 0.64 times more return on investment than OneSavings Bank. However, Allianz Technology Trust is 1.57 times less risky than OneSavings Bank. It trades about 0.09 of its potential returns per unit of risk. OneSavings Bank PLC is currently generating about 0.02 per unit of risk. If you would invest 20,650 in Allianz Technology Trust on September 12, 2024 and sell it today you would earn a total of 20,500 from holding Allianz Technology Trust or generate 99.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Allianz Technology Trust vs. OneSavings Bank PLC
Performance |
| Timeline |
| Allianz Technology Trust |
| OneSavings Bank PLC |
Allianz Technology and OneSavings Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allianz Technology and OneSavings Bank
The main advantage of trading using opposite Allianz Technology and OneSavings Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allianz Technology position performs unexpectedly, OneSavings Bank 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 OneSavings Bank will offset losses from the drop in OneSavings Bank'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 |
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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 Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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