Correlation Between Synthomer Plc and Allianz Technology
Can any of the company-specific risk be diversified away by investing in both Synthomer Plc 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 Synthomer Plc and Allianz Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Synthomer plc and Allianz Technology Trust, you can compare the effects of market volatilities on Synthomer Plc 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 Synthomer Plc with a short position of Allianz Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Synthomer Plc and Allianz Technology.
Diversification Opportunities for Synthomer Plc and Allianz Technology
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Synthomer and Allianz is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Synthomer 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 Synthomer Plc 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 Synthomer 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 Synthomer Plc i.e., Synthomer Plc and Allianz Technology go up and down completely randomly.
Pair Corralation between Synthomer Plc and Allianz Technology
Assuming the 90 days trading horizon Synthomer plc is expected to under-perform the Allianz Technology. In addition to that, Synthomer Plc is 1.76 times more volatile than Allianz Technology Trust. It trades about -0.1 of its total potential returns per unit of risk. Allianz Technology Trust is currently generating about 0.15 per unit of volatility. If you would invest 37,900 in Allianz Technology Trust on August 26, 2024 and sell it today you would earn a total of 1,900 from holding Allianz Technology Trust or generate 5.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Synthomer plc vs. Allianz Technology Trust
Performance |
| Timeline |
| Synthomer plc |
| Allianz Technology Trust |
Synthomer Plc and Allianz Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Synthomer Plc and Allianz Technology
The main advantage of trading using opposite Synthomer Plc and Allianz Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Synthomer Plc 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.| Synthomer Plc vs. Givaudan SA | Synthomer Plc vs. Antofagasta PLC | Synthomer Plc vs. Centamin PLC | Synthomer Plc vs. Atalaya Mining |
| Allianz Technology vs. Roper Technologies | Allianz Technology vs. Raytheon Technologies Corp | Allianz Technology vs. Eastinco Mining Exploration | Allianz Technology vs. Coeur Mining |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Positions Ratings 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 | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |