Correlation Between SupplyMe Capital and Allianz Technology
Can any of the company-specific risk be diversified away by investing in both SupplyMe Capital 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 SupplyMe Capital and Allianz Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SupplyMe Capital PLC and Allianz Technology Trust, you can compare the effects of market volatilities on SupplyMe Capital 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 SupplyMe Capital with a short position of Allianz Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of SupplyMe Capital and Allianz Technology.
Diversification Opportunities for SupplyMe Capital and Allianz Technology
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SupplyMe and Allianz is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding SupplyMe Capital PLC 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 SupplyMe Capital 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 SupplyMe Capital PLC 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 SupplyMe Capital i.e., SupplyMe Capital and Allianz Technology go up and down completely randomly.
Pair Corralation between SupplyMe Capital and Allianz Technology
Assuming the 90 days trading horizon SupplyMe Capital PLC is expected to generate 11.73 times more return on investment than Allianz Technology. However, SupplyMe Capital is 11.73 times more volatile than Allianz Technology Trust. It trades about 0.12 of its potential returns per unit of risk. Allianz Technology Trust is currently generating about 0.18 per unit of risk. If you would invest 0.30 in SupplyMe Capital PLC on September 12, 2024 and sell it today you would earn a total of 0.06 from holding SupplyMe Capital PLC or generate 20.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SupplyMe Capital PLC vs. Allianz Technology Trust
Performance |
| Timeline |
| SupplyMe Capital PLC |
| Allianz Technology Trust |
SupplyMe Capital and Allianz Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SupplyMe Capital and Allianz Technology
The main advantage of trading using opposite SupplyMe Capital and Allianz Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SupplyMe Capital 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.| SupplyMe Capital vs. Hochschild Mining plc | SupplyMe Capital vs. AcadeMedia AB | SupplyMe Capital vs. Coor Service Management | SupplyMe Capital vs. Hollywood Bowl Group |
| Allianz Technology vs. Samsung Electronics Co | Allianz Technology vs. Samsung Electronics Co | Allianz Technology vs. Hyundai Motor | Allianz Technology vs. Toyota Motor Corp |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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