Correlation Between Clean Power and Allianz Technology

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

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

Diversification Opportunities for Clean Power and Allianz Technology

-0.45

Correlation Coefficient

Clean Power  Allianz Technology

Very good diversification

The 3 months correlation between Clean and Allianz is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Clean Power Hydrogen 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 Clean Power 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 Clean Power Hydrogen 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 Clean Power i.e., Clean Power and Allianz Technology go up and down completely randomly.

Pair Corralation between Clean Power and Allianz Technology

Assuming the 90 days trading horizon Clean Power Hydrogen is expected to under-perform the Allianz Technology. In addition to that, Clean Power is 1.8 times more volatile than Allianz Technology Trust. It trades about -0.09 of its total potential returns per unit of risk. Allianz Technology Trust is currently generating about 0.35 per unit of volatility. If you would invest  33,950  in Allianz Technology Trust on April 23, 2025 and sell it today you would earn a total of  11,250  from holding Allianz Technology Trust or generate 33.14% return on investment over 90 days.

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

Clean Power Hydrogen  vs.  Allianz Technology Trust

Clean Power Hydrogen

Risk-Adjusted Performance

Very Weak

Over the last 90 days Clean Power Hydrogen has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in August 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

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Allianz Technology Trust are ranked lower than 27 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain technical and fundamental indicators, Allianz Technology exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Clean Power and Allianz Technology

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

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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.