Correlation Between Marks and Allianz Technology
Can any of the company-specific risk be diversified away by investing in both Marks and Allianz Technology 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 Marks and Allianz Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marks and Spencer and Allianz Technology Trust, you can compare the effects of market volatilities on Marks and Allianz Technology 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 Marks with a short position of Allianz Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marks and Allianz Technology.
Diversification Opportunities for Marks and Allianz Technology
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Marks and Allianz is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Marks and Spencer and Allianz Technology Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allianz Technology Trust and Marks 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 Marks and Spencer are associated (or correlated) with Allianz Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allianz Technology Trust has no effect on the direction of Marks i.e., Marks and Allianz Technology go up and down completely randomly.
Pair Corralation between Marks and Allianz Technology
Assuming the 90 days trading horizon Marks and Spencer is expected to under-perform the Allianz Technology. In addition to that, Marks is 1.31 times more volatile than Allianz Technology Trust. It trades about -0.18 of its total potential returns per unit of risk. Allianz Technology Trust is currently generating about 0.02 per unit of volatility. If you would invest 43,350 in Allianz Technology Trust on November 7, 2024 and sell it today you would earn a total of 250.00 from holding Allianz Technology Trust or generate 0.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Marks and Spencer vs. Allianz Technology Trust
Performance |
| Timeline |
| Marks and Spencer |
| Allianz Technology Trust |
Marks and Allianz Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marks and Allianz Technology
The main advantage of trading using opposite Marks and Allianz Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marks position performs unexpectedly, Allianz Technology 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 Technology will offset losses from the drop in Allianz Technology's long position.| Marks vs. International Consolidated Airlines | Marks vs. Charter Communications Cl | Marks vs. Telecom Italia SpA | Marks vs. British American Tobacco |
| Allianz Technology vs. Hecla Mining Co | Allianz Technology vs. Invesco Physical Silver | Allianz Technology vs. AfriTin Mining | Allianz Technology vs. European Metals Holdings |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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