Correlation Between Allianz Technology and Taylor Maritime
Can any of the company-specific risk be diversified away by investing in both Allianz Technology and Taylor Maritime 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 Taylor Maritime 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 Taylor Maritime Investments, you can compare the effects of market volatilities on Allianz Technology and Taylor Maritime 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 Taylor Maritime. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allianz Technology and Taylor Maritime.
Diversification Opportunities for Allianz Technology and Taylor Maritime
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Allianz and Taylor is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Allianz Technology Trust and Taylor Maritime Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Taylor Maritime Inve 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 Taylor Maritime. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Taylor Maritime Inve has no effect on the direction of Allianz Technology i.e., Allianz Technology and Taylor Maritime go up and down completely randomly.
Pair Corralation between Allianz Technology and Taylor Maritime
Assuming the 90 days trading horizon Allianz Technology Trust is expected to generate 1.1 times more return on investment than Taylor Maritime. However, Allianz Technology is 1.1 times more volatile than Taylor Maritime Investments. It trades about 0.27 of its potential returns per unit of risk. Taylor Maritime Investments is currently generating about -0.23 per unit of risk. If you would invest 36,400 in Allianz Technology Trust on September 1, 2024 and sell it today you would earn a total of 3,350 from holding Allianz Technology Trust or generate 9.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Allianz Technology Trust vs. Taylor Maritime Investments
Performance |
| Timeline |
| Allianz Technology Trust |
| Taylor Maritime Inve |
Allianz Technology and Taylor Maritime Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allianz Technology and Taylor Maritime
The main advantage of trading using opposite Allianz Technology and Taylor Maritime positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allianz Technology position performs unexpectedly, Taylor Maritime 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 Taylor Maritime will offset losses from the drop in Taylor Maritime's long position.| Allianz Technology vs. Games Workshop Group | Allianz Technology vs. Auto Trader Group | Allianz Technology vs. SANTANDER UK 10 | Allianz Technology vs. Coor Service Management |
| Taylor Maritime vs. Uniper SE | Taylor Maritime vs. Mulberry Group PLC | Taylor Maritime vs. London Security Plc | Taylor Maritime vs. Triad Group PLC |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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