Correlation Between Allianz Technology and IShares Physical
Can any of the company-specific risk be diversified away by investing in both Allianz Technology and IShares Physical 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 IShares Physical 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 iShares Physical Silver, you can compare the effects of market volatilities on Allianz Technology and IShares Physical 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 IShares Physical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allianz Technology and IShares Physical.
Diversification Opportunities for Allianz Technology and IShares Physical
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Allianz and IShares is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Allianz Technology Trust and iShares Physical Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Physical Silver 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 IShares Physical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Physical Silver has no effect on the direction of Allianz Technology i.e., Allianz Technology and IShares Physical go up and down completely randomly.
Pair Corralation between Allianz Technology and IShares Physical
Assuming the 90 days trading horizon Allianz Technology is expected to generate 2.71 times less return on investment than IShares Physical. But when comparing it to its historical volatility, Allianz Technology Trust is 1.03 times less risky than IShares Physical. It trades about 0.08 of its potential returns per unit of risk. iShares Physical Silver is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 225,500 in iShares Physical Silver on October 23, 2024 and sell it today you would earn a total of 11,375 from holding iShares Physical Silver or generate 5.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 94.74% |
| Values | Daily Returns |
Allianz Technology Trust vs. iShares Physical Silver
Performance |
| Timeline |
| Allianz Technology Trust |
| iShares Physical Silver |
Allianz Technology and IShares Physical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allianz Technology and IShares Physical
The main advantage of trading using opposite Allianz Technology and IShares Physical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allianz Technology position performs unexpectedly, IShares Physical 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 IShares Physical will offset losses from the drop in IShares Physical's long position.| Allianz Technology vs. Catalyst Media Group | Allianz Technology vs. CATLIN GROUP | Allianz Technology vs. Tamburi Investment Partners | Allianz Technology vs. Magnora ASA |
| IShares Physical vs. Games Workshop Group | IShares Physical vs. Fortune Brands Home | IShares Physical vs. Evolution Gaming Group | IShares Physical vs. AfriTin Mining |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |