Correlation Between UET United and Allianz SE
Can any of the company-specific risk be diversified away by investing in both UET United and Allianz SE 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 UET United and Allianz SE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between UET United Electronic and Allianz SE, you can compare the effects of market volatilities on UET United and Allianz SE 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 UET United with a short position of Allianz SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of UET United and Allianz SE.
Diversification Opportunities for UET United and Allianz SE
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between UET and Allianz is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding UET United Electronic and Allianz SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allianz SE and UET United 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 UET United Electronic are associated (or correlated) with Allianz SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allianz SE has no effect on the direction of UET United i.e., UET United and Allianz SE go up and down completely randomly.
Pair Corralation between UET United and Allianz SE
Assuming the 90 days trading horizon UET United Electronic is expected to under-perform the Allianz SE. In addition to that, UET United is 4.52 times more volatile than Allianz SE. It trades about -0.03 of its total potential returns per unit of risk. Allianz SE is currently generating about 0.11 per unit of volatility. If you would invest 23,265 in Allianz SE on September 4, 2024 and sell it today you would earn a total of 6,305 from holding Allianz SE or generate 27.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
UET United Electronic vs. Allianz SE
Performance |
| Timeline |
| UET United Electronic |
| Allianz SE |
UET United and Allianz SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UET United and Allianz SE
The main advantage of trading using opposite UET United and Allianz SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UET United position performs unexpectedly, Allianz SE 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 Allianz SE will offset losses from the drop in Allianz SE's long position.| UET United vs. Cisco Systems | UET United vs. Cisco Systems | UET United vs. Motorola Solutions | UET United vs. Nokia |
| Allianz SE vs. ELMOS SEMICONDUCTOR | Allianz SE vs. UET United Electronic | Allianz SE vs. ELECTRONIC ARTS | Allianz SE vs. STORE ELECTRONIC |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Commodity Directory Find actively traded commodities issued by global exchanges |