Correlation Between Gelsenwasser and Allianz SE
Can any of the company-specific risk be diversified away by investing in both Gelsenwasser and Allianz SE 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 Gelsenwasser and Allianz SE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gelsenwasser AG and Allianz SE VNA, you can compare the effects of market volatilities on Gelsenwasser and Allianz SE 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 Gelsenwasser with a short position of Allianz SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gelsenwasser and Allianz SE.
Diversification Opportunities for Gelsenwasser and Allianz SE
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Gelsenwasser and Allianz is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Gelsenwasser AG and Allianz SE VNA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allianz SE VNA and Gelsenwasser 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 Gelsenwasser AG are associated (or correlated) with Allianz SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allianz SE VNA has no effect on the direction of Gelsenwasser i.e., Gelsenwasser and Allianz SE go up and down completely randomly.
Pair Corralation between Gelsenwasser and Allianz SE
Assuming the 90 days horizon Gelsenwasser AG is expected to generate 3.13 times more return on investment than Allianz SE. However, Gelsenwasser is 3.13 times more volatile than Allianz SE VNA. It trades about 0.07 of its potential returns per unit of risk. Allianz SE VNA is currently generating about 0.11 per unit of risk. If you would invest 50,000 in Gelsenwasser AG on September 4, 2024 and sell it today you would earn a total of 2,000 from holding Gelsenwasser AG or generate 4.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gelsenwasser AG vs. Allianz SE VNA
Performance |
| Timeline |
| Gelsenwasser AG |
| Allianz SE VNA |
Gelsenwasser and Allianz SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gelsenwasser and Allianz SE
The main advantage of trading using opposite Gelsenwasser and Allianz SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gelsenwasser position performs unexpectedly, Allianz SE 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 SE will offset losses from the drop in Allianz SE's long position.| Gelsenwasser vs. Bumrungrad Hospital Public | Gelsenwasser vs. CVS Health | Gelsenwasser vs. Brockhaus Capital Management | Gelsenwasser vs. ANTA SPORTS PRODUCT |
| Allianz SE vs. Berkshire Hathaway | Allianz SE vs. AXA SA | Allianz SE vs. AXA SA | Allianz SE vs. The Hartford Financial |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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