Correlation Between Allianzgi Nfj and Foundry Partners

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

By analyzing existing cross correlation between Allianzgi Nfj International and Foundry Partners Fundamental, you can compare the effects of market volatilities on Allianzgi Nfj and Foundry Partners 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 Nfj with a short position of Foundry Partners. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allianzgi Nfj and Foundry Partners.

Diversification Opportunities for Allianzgi Nfj and Foundry Partners

0.57

Correlation Coefficient

Allianzgi Nfj  Foundry Partners

Very weak diversification

The 3 months correlation between Allianzgi and Foundry is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Allianzgi Nfj International and Foundry Partners Fundamental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Foundry Partners Fun and Allianzgi Nfj 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 Nfj International are associated (or correlated) with Foundry Partners. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Foundry Partners Fun has no effect on the direction of Allianzgi Nfj i.e., Allianzgi Nfj and Foundry Partners go up and down completely randomly.

Pair Corralation between Allianzgi Nfj and Foundry Partners

Assuming the 90 days horizon Allianzgi Nfj International is expected to generate 0.19 times more return on investment than Foundry Partners. However, Allianzgi Nfj International is 5.35 times less risky than Foundry Partners. It trades about -0.13 of its potential returns per unit of risk. Foundry Partners Fundamental is currently generating about -0.16 per unit of risk. If you would invest  1,813  in Allianzgi Nfj International on October 17, 2024 and sell it today you would lose (59.00) from holding Allianzgi Nfj International or give up 3.25% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	97.44%
Values	Daily Returns

Allianzgi Nfj International  vs.  Foundry Partners Fundamental

Allianzgi Nfj Intern

Risk-Adjusted Performance

0 of 100

Very Weak

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

Foundry Partners Fun

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Foundry Partners Fundamental has generated negative risk-adjusted returns adding no value to fund investors. In spite of fragile performance in the last few months, the Fund's basic indicators remain fairly strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

Pair Trading with Allianzgi Nfj and Foundry Partners

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

The idea behind Allianzgi Nfj International and Foundry Partners Fundamental 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.