Correlation Between State Bank and Allianz Technology
Can any of the company-specific risk be diversified away by investing in both State Bank 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 State Bank and Allianz Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between State Bank of and Allianz Technology Trust, you can compare the effects of market volatilities on State Bank 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 State Bank with a short position of Allianz Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Bank and Allianz Technology.
Diversification Opportunities for State Bank and Allianz Technology
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between State and Allianz is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding State Bank of 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 State Bank 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 State Bank of 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 State Bank i.e., State Bank and Allianz Technology go up and down completely randomly.
Pair Corralation between State Bank and Allianz Technology
Assuming the 90 days trading horizon State Bank of is expected to under-perform the Allianz Technology. But the stock apears to be less risky and, when comparing its historical volatility, State Bank of is 1.18 times less risky than Allianz Technology. The stock trades about -0.14 of its potential returns per unit of risk. The Allianz Technology Trust is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 42,300 in Allianz Technology Trust on November 3, 2024 and sell it today you would earn a total of 2,000 from holding Allianz Technology Trust or generate 4.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
State Bank of vs. Allianz Technology Trust
Performance |
| Timeline |
| State Bank |
| Allianz Technology Trust |
State Bank and Allianz Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with State Bank and Allianz Technology
The main advantage of trading using opposite State Bank and Allianz Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Bank 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.| State Bank vs. Axway Software SA | State Bank vs. Allianz Technology Trust | State Bank vs. Target Healthcare REIT | State Bank vs. Xeros Technology Group |
| Allianz Technology vs. Air Products Chemicals | Allianz Technology vs. Gruppo MutuiOnline SpA | Allianz Technology vs. Waste Management | Allianz Technology vs. Amedeo Air Four |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Stocks Directory Find actively traded stocks across global markets | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |