Correlation Between Allianz Technology and Pensionbee Group
Can any of the company-specific risk be diversified away by investing in both Allianz Technology and Pensionbee Group 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 Pensionbee Group 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 Pensionbee Group PLC, you can compare the effects of market volatilities on Allianz Technology and Pensionbee Group 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 Pensionbee Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allianz Technology and Pensionbee Group.
Diversification Opportunities for Allianz Technology and Pensionbee Group
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Allianz and Pensionbee is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Allianz Technology Trust and Pensionbee Group PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pensionbee Group 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 Pensionbee Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pensionbee Group PLC has no effect on the direction of Allianz Technology i.e., Allianz Technology and Pensionbee Group go up and down completely randomly.
Pair Corralation between Allianz Technology and Pensionbee Group
Assuming the 90 days trading horizon Allianz Technology Trust is expected to generate 0.66 times more return on investment than Pensionbee Group. However, Allianz Technology Trust is 1.51 times less risky than Pensionbee Group. It trades about 0.11 of its potential returns per unit of risk. Pensionbee Group PLC is currently generating about -0.06 per unit of risk. If you would invest 42,600 in Allianz Technology Trust on November 4, 2024 and sell it today you would earn a total of 1,700 from holding Allianz Technology Trust or generate 3.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Allianz Technology Trust vs. Pensionbee Group PLC
Performance |
| Timeline |
| Allianz Technology Trust |
| Pensionbee Group PLC |
Allianz Technology and Pensionbee Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allianz Technology and Pensionbee Group
The main advantage of trading using opposite Allianz Technology and Pensionbee Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allianz Technology position performs unexpectedly, Pensionbee Group 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 Pensionbee Group will offset losses from the drop in Pensionbee Group's long position.| Allianz Technology vs. Molson Coors Beverage | Allianz Technology vs. GoldMining | Allianz Technology vs. Scandinavian Tobacco Group | Allianz Technology vs. Endeavour Mining 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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