Correlation Between Sabien Technology and Allianz Technology
Can any of the company-specific risk be diversified away by investing in both Sabien Technology 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 Sabien Technology and Allianz Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sabien Technology Group and Allianz Technology Trust, you can compare the effects of market volatilities on Sabien Technology 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 Sabien Technology with a short position of Allianz Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sabien Technology and Allianz Technology.
Diversification Opportunities for Sabien Technology and Allianz Technology
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Sabien and Allianz is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Sabien Technology Group 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 Sabien 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 Sabien Technology Group 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 Sabien Technology i.e., Sabien Technology and Allianz Technology go up and down completely randomly.
Pair Corralation between Sabien Technology and Allianz Technology
Assuming the 90 days trading horizon Sabien Technology Group is expected to under-perform the Allianz Technology. In addition to that, Sabien Technology is 1.4 times more volatile than Allianz Technology Trust. It trades about -0.37 of its total potential returns per unit of risk. Allianz Technology Trust is currently generating about 0.12 per unit of volatility. 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 Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sabien Technology Group vs. Allianz Technology Trust
Performance |
| Timeline |
| Sabien Technology |
| Allianz Technology Trust |
Sabien Technology and Allianz Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sabien Technology and Allianz Technology
The main advantage of trading using opposite Sabien Technology and Allianz Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sabien Technology 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.| Sabien Technology vs. SM Energy Co | Sabien Technology vs. FuelCell Energy | Sabien Technology vs. Grand Vision Media | Sabien Technology vs. Overstock |
| Allianz Technology vs. Bankers Investment Trust | Allianz Technology vs. Edinburgh Investment Trust | Allianz Technology vs. Seraphim Space Investment | Allianz Technology vs. JPMorgan Japanese Investment |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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