Correlation Between Allianzgi Diversified and Glg Intl
Can any of the company-specific risk be diversified away by investing in both Allianzgi Diversified and Glg Intl 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 Diversified and Glg Intl into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Allianzgi Diversified Income and Glg Intl Small, you can compare the effects of market volatilities on Allianzgi Diversified and Glg Intl 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 Diversified with a short position of Glg Intl. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allianzgi Diversified and Glg Intl.
Diversification Opportunities for Allianzgi Diversified and Glg Intl
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Allianzgi and Glg is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Allianzgi Diversified Income and Glg Intl Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Glg Intl Small and Allianzgi Diversified 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 Diversified Income are associated (or correlated) with Glg Intl. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Glg Intl Small has no effect on the direction of Allianzgi Diversified i.e., Allianzgi Diversified and Glg Intl go up and down completely randomly.
Pair Corralation between Allianzgi Diversified and Glg Intl
Considering the 90-day investment horizon Allianzgi Diversified is expected to generate 1.24 times less return on investment than Glg Intl. In addition to that, Allianzgi Diversified is 1.06 times more volatile than Glg Intl Small. It trades about 0.07 of its total potential returns per unit of risk. Glg Intl Small is currently generating about 0.1 per unit of volatility. If you would invest 5,216 in Glg Intl Small on September 26, 2024 and sell it today you would earn a total of 3,344 from holding Glg Intl Small or generate 64.11% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Allianzgi Diversified Income vs. Glg Intl Small
Performance |
Timeline |
Allianzgi Diversified |
Glg Intl Small |
Allianzgi Diversified and Glg Intl Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Allianzgi Diversified and Glg Intl
The main advantage of trading using opposite Allianzgi Diversified and Glg Intl positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allianzgi Diversified position performs unexpectedly, Glg Intl 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 Glg Intl will offset losses from the drop in Glg Intl's long position.Allianzgi Diversified vs. Brookfield Business Corp | Allianzgi Diversified vs. Elysee Development Corp | Allianzgi Diversified vs. DWS Municipal Income | Allianzgi Diversified vs. Blackrock Munivest |
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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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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