Correlation Between Allianz Clean and Swedbank Robur

Can any of the company-specific risk be diversified away by investing in both Allianz Clean and Swedbank Robur 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 Allianz Clean and Swedbank Robur into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Allianz Clean Planet and Swedbank Robur Corporate, you can compare the effects of market volatilities on Allianz Clean and Swedbank Robur 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 Allianz Clean with a short position of Swedbank Robur. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allianz Clean and Swedbank Robur.

Diversification Opportunities for Allianz Clean and Swedbank Robur

0.34

Correlation Coefficient

Allianz Clean  Swedbank Robur

Weak diversification

The 3 months correlation between Allianz and Swedbank is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Allianz Clean Planet and Swedbank Robur Corporate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Swedbank Robur Corporate and Allianz Clean 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 Allianz Clean Planet are associated (or correlated) with Swedbank Robur. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Swedbank Robur Corporate has no effect on the direction of Allianz Clean i.e., Allianz Clean and Swedbank Robur go up and down completely randomly.

Pair Corralation between Allianz Clean and Swedbank Robur

Assuming the 90 days trading horizon Allianz Clean is expected to generate 105.0 times less return on investment than Swedbank Robur. In addition to that, Allianz Clean is 4.95 times more volatile than Swedbank Robur Corporate. It trades about 0.0 of its total potential returns per unit of risk. Swedbank Robur Corporate is currently generating about 0.06 per unit of volatility. If you would invest  968.00  in Swedbank Robur Corporate on October 23, 2024 and sell it today you would earn a total of  6.00  from holding Swedbank Robur Corporate or generate 0.62% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.33%
Values	Daily Returns

Allianz Clean Planet  vs.  Swedbank Robur Corporate

Allianz Clean Planet

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Allianz Clean Planet has generated negative risk-adjusted returns adding no value to fund investors. Despite quite persistent basic indicators, Allianz Clean is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Swedbank Robur Corporate

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Swedbank Robur Corporate are ranked lower than 4 (%) of all funds and portfolios of funds over the last 90 days. In spite of very healthy basic indicators, Swedbank Robur is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Allianz Clean and Swedbank Robur

The main advantage of trading using opposite Allianz Clean and Swedbank Robur positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allianz Clean position performs unexpectedly, Swedbank Robur 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 Swedbank Robur will offset losses from the drop in Swedbank Robur's long position.

The idea behind Allianz Clean Planet and Swedbank Robur Corporate pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.