Correlation Between Allianz Technology and Young Cos
Can any of the company-specific risk be diversified away by investing in both Allianz Technology and Young Cos 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 Young Cos 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 Young Cos Brewery, you can compare the effects of market volatilities on Allianz Technology and Young Cos 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 Young Cos. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allianz Technology and Young Cos.
Diversification Opportunities for Allianz Technology and Young Cos
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Allianz and Young is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Allianz Technology Trust and Young Cos Brewery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Young Cos Brewery 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 Young Cos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Young Cos Brewery has no effect on the direction of Allianz Technology i.e., Allianz Technology and Young Cos go up and down completely randomly.
Pair Corralation between Allianz Technology and Young Cos
Assuming the 90 days trading horizon Allianz Technology Trust is expected to generate 1.05 times more return on investment than Young Cos. However, Allianz Technology is 1.05 times more volatile than Young Cos Brewery. It trades about 0.15 of its potential returns per unit of risk. Young Cos Brewery is currently generating about 0.1 per unit of risk. If you would invest 39,750 in Allianz Technology Trust on September 15, 2024 and sell it today you would earn a total of 1,750 from holding Allianz Technology Trust or generate 4.4% 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. Young Cos Brewery
Performance |
| Timeline |
| Allianz Technology Trust |
| Young Cos Brewery |
Allianz Technology and Young Cos Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allianz Technology and Young Cos
The main advantage of trading using opposite Allianz Technology and Young Cos positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allianz Technology position performs unexpectedly, Young Cos 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 Young Cos will offset losses from the drop in Young Cos' long position.| Allianz Technology vs. Catalyst Media Group | Allianz Technology vs. CATLIN GROUP | Allianz Technology vs. Tamburi Investment Partners | Allianz Technology vs. Magnora ASA |
| Young Cos vs. Allianz Technology Trust | Young Cos vs. Alfa Financial Software | Young Cos vs. Sunny Optical Technology | Young Cos vs. Take Two Interactive 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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