Correlation Between Allianz SE and Allianz SE

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

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

Diversification Opportunities for Allianz SE and Allianz SE

0.0

Correlation Coefficient

Allianz SE  Allianz SE

Pay attention - limited upside

The 3 months correlation between Allianz and Allianz is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Allianz SE and Allianz SE ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allianz SE ADR and Allianz SE 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 SE 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 ADR has no effect on the direction of Allianz SE i.e., Allianz SE and Allianz SE go up and down completely randomly.

Pair Corralation between Allianz SE and Allianz SE

If you would invest  30,575  in Allianz SE on December 30, 2024 and sell it today you would earn a total of  6,950  from holding Allianz SE or generate 22.73% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Allianz SE  vs.  Allianz SE ADR

Allianz SE

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Allianz SE are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Allianz SE reported solid returns over the last few months and may actually be approaching a breakup point.

Allianz SE ADR

Risk-Adjusted Performance

Very Weak

Over the last 90 days Allianz SE ADR has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Allianz SE is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Allianz SE and Allianz SE

The main advantage of trading using opposite Allianz SE and Allianz SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allianz SE 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.

The idea behind Allianz SE and Allianz SE ADR 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.

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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.