Correlation Between Allianzgi Best and Teberg Fund

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

By analyzing existing cross correlation between Allianzgi Best Styles and The Teberg Fund, you can compare the effects of market volatilities on Allianzgi Best and Teberg Fund 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 Allianzgi Best with a short position of Teberg Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allianzgi Best and Teberg Fund.

Diversification Opportunities for Allianzgi Best and Teberg Fund

1.0

Correlation Coefficient

Allianzgi Best  Teberg Fund

No risk reduction

The 3 months correlation between Allianzgi and Teberg is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding Allianzgi Best Styles and The Teberg Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Teberg Fund and Allianzgi Best 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 Allianzgi Best Styles are associated (or correlated) with Teberg Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Teberg Fund has no effect on the direction of Allianzgi Best i.e., Allianzgi Best and Teberg Fund go up and down completely randomly.

Pair Corralation between Allianzgi Best and Teberg Fund

Assuming the 90 days horizon Allianzgi Best Styles is expected to under-perform the Teberg Fund. In addition to that, Allianzgi Best is 1.0 times more volatile than The Teberg Fund. It trades about -0.3 of its total potential returns per unit of risk. The Teberg Fund is currently generating about -0.3 per unit of volatility. If you would invest  2,496  in The Teberg Fund on December 10, 2024 and sell it today you would lose (186.00) from holding The Teberg Fund or give up 7.45% of portfolio value over 90 days.

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

Allianzgi Best Styles  vs.  The Teberg Fund

Allianzgi Best Styles

Risk-Adjusted Performance

Very Weak

Over the last 90 days Allianzgi Best Styles has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Teberg Fund

Risk-Adjusted Performance

Very Weak

Over the last 90 days The Teberg Fund has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Pair Trading with Allianzgi Best and Teberg Fund

The main advantage of trading using opposite Allianzgi Best and Teberg Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allianzgi Best position performs unexpectedly, Teberg Fund 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 Teberg Fund will offset losses from the drop in Teberg Fund's long position.

The idea behind Allianzgi Best Styles and The Teberg Fund 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.