Correlation Between Allianz SE and China Merchants
Can any of the company-specific risk be diversified away by investing in both Allianz SE and China Merchants 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 China Merchants into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Allianz SE and China Merchants Port, you can compare the effects of market volatilities on Allianz SE and China Merchants 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 China Merchants. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allianz SE and China Merchants.
Diversification Opportunities for Allianz SE and China Merchants
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Allianz and China is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Allianz SE and China Merchants Port in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Merchants Port 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 China Merchants. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Merchants Port has no effect on the direction of Allianz SE i.e., Allianz SE and China Merchants go up and down completely randomly.
Pair Corralation between Allianz SE and China Merchants
Assuming the 90 days horizon Allianz SE is expected to generate 0.46 times more return on investment than China Merchants. However, Allianz SE is 2.16 times less risky than China Merchants. It trades about 0.08 of its potential returns per unit of risk. China Merchants Port is currently generating about 0.01 per unit of risk. If you would invest 33,650 in Allianz SE on April 23, 2025 and sell it today you would earn a total of 600.00 from holding Allianz SE or generate 1.78% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 95.45% |
Values | Daily Returns |
Allianz SE vs. China Merchants Port
Performance |
Timeline |
Allianz SE |
China Merchants Port |
Allianz SE and China Merchants Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Allianz SE and China Merchants
The main advantage of trading using opposite Allianz SE and China Merchants positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allianz SE position performs unexpectedly, China Merchants 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 China Merchants will offset losses from the drop in China Merchants' long position.Allianz SE vs. RYU Apparel | Allianz SE vs. Universal Electronics | Allianz SE vs. STORE ELECTRONIC | Allianz SE vs. URBAN OUTFITTERS |
China Merchants vs. COSCO SHIPPING Holdings | China Merchants vs. Nippon Yusen Kabushiki | China Merchants vs. Hapag Lloyd AG | China Merchants vs. Mitsui OSK Lines |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
Share Portfolio Track or share privately all of your investments from the convenience of any device | |
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
Equity Valuation Check real value of public entities based on technical and fundamental data | |
FinTech Suite Use AI to screen and filter profitable investment opportunities | |
Analyst Advice Analyst recommendations and target price estimates broken down by several categories |