With the ECB expected to potentially hike interest rates this year higher interest rates typically mean higher interest rate charges for loans. That should increase the profitability of financial companies. Insurance companies typically invest in bonds and should benefit from the higher yields.

Let’s use the Seasonax screener function to automatically generate a list of the most promising investment opportunities in this sector.

Choose DAX as your market. Let’s look at seasonal patterns for the past 15 years starting on February 22. Set the minimum and maximum time period that you want to hold the instrument ranging from 5 to 30 days. And as the last step, select the filter at 60% that will screen your results and remove all patterns with lower rates of winning trades.

We can see that over the last 15 years, Allianz has risen 09 times! So, this way we can recognise some strong seasonal patterns to investigate.

Major Trade Risks:

  • Any large falls in European inflation will reduce the ECB’s need to raise interest rates so aggressively
  • Any bad news for Allianz can also weigh on its share price.