Correlation Between Celebrus Technologies and Allianz Technology

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

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

Diversification Opportunities for Celebrus Technologies and Allianz Technology

-0.73

Correlation Coefficient

Celebrus Technologies  Allianz Technology

Pay attention - limited upside

The 3 months correlation between Celebrus and Allianz is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Celebrus Technologies 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 Celebrus 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 Celebrus Technologies 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 Celebrus Technologies i.e., Celebrus Technologies and Allianz Technology go up and down completely randomly.

Pair Corralation between Celebrus Technologies and Allianz Technology

Assuming the 90 days trading horizon Celebrus Technologies plc is expected to generate 0.86 times more return on investment than Allianz Technology. However, Celebrus Technologies plc is 1.16 times less risky than Allianz Technology. It trades about 0.27 of its potential returns per unit of risk. Allianz Technology Trust is currently generating about -0.16 per unit of risk. If you would invest  22,500  in Celebrus Technologies plc on December 4, 2024 and sell it today you would earn a total of  2,000  from holding Celebrus Technologies plc or generate 8.89% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Celebrus Technologies plc  vs.  Allianz Technology Trust

Celebrus Technologies plc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Celebrus Technologies plc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Allianz Technology Trust

Risk-Adjusted Performance

Very Weak

Over the last 90 days Allianz Technology Trust has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, Allianz Technology is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Celebrus Technologies and Allianz Technology

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

The idea behind Celebrus Technologies plc and Allianz Technology Trust 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.