Correlation Between Exela Technologies and Allianzgi Technology
Can any of the company-specific risk be diversified away by investing in both Exela Technologies and Allianzgi 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 Exela Technologies and Allianzgi Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Exela Technologies Preferred and Allianzgi Technology Fund, you can compare the effects of market volatilities on Exela Technologies and Allianzgi 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 Exela Technologies with a short position of Allianzgi Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exela Technologies and Allianzgi Technology.
Diversification Opportunities for Exela Technologies and Allianzgi Technology
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Exela and Allianzgi is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Exela Technologies Preferred and Allianzgi Technology Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allianzgi Technology and Exela Technologies 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 Exela Technologies Preferred are associated (or correlated) with Allianzgi Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allianzgi Technology has no effect on the direction of Exela Technologies i.e., Exela Technologies and Allianzgi Technology go up and down completely randomly.
Pair Corralation between Exela Technologies and Allianzgi Technology
Assuming the 90 days horizon Exela Technologies Preferred is expected to under-perform the Allianzgi Technology. In addition to that, Exela Technologies is 5.41 times more volatile than Allianzgi Technology Fund. It trades about -0.25 of its total potential returns per unit of risk. Allianzgi Technology Fund is currently generating about 0.12 per unit of volatility. If you would invest 5,834 in Allianzgi Technology Fund on August 25, 2024 and sell it today you would earn a total of 390.00 from holding Allianzgi Technology Fund or generate 6.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 82.22% |
| Values | Daily Returns |
Exela Technologies Preferred vs. Allianzgi Technology Fund
Performance |
| Timeline |
| Exela Technologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Allianzgi Technology |
Exela Technologies and Allianzgi Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Exela Technologies and Allianzgi Technology
The main advantage of trading using opposite Exela Technologies and Allianzgi Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exela Technologies position performs unexpectedly, Allianzgi 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 Allianzgi Technology will offset losses from the drop in Allianzgi Technology's long position.| Exela Technologies vs. Lytus Technologies Holdings | Exela Technologies vs. Quoin Pharmaceuticals Ltd | Exela Technologies vs. HeartCore Enterprises | Exela Technologies vs. Soluna Holdings Preferred |
| Allianzgi Technology vs. Red Oak Technology | Allianzgi Technology vs. Kinetics Internet Fund | Allianzgi Technology vs. Aquagold International | Allianzgi Technology vs. Morningstar Unconstrained Allocation |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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