Correlation Between Virtus Allianzgi and Pgim Global

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

By analyzing existing cross correlation between Virtus Allianzgi Artificial and Pgim Global High, you can compare the effects of market volatilities on Virtus Allianzgi and Pgim Global 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 Virtus Allianzgi with a short position of Pgim Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Virtus Allianzgi and Pgim Global.

Diversification Opportunities for Virtus Allianzgi and Pgim Global

-0.23

Correlation Coefficient

Virtus Allianzgi  Pgim Global

Very good diversification

The 3 months correlation between Virtus and Pgim is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Virtus Allianzgi Artificial and Pgim Global High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pgim Global High and Virtus Allianzgi 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 Virtus Allianzgi Artificial are associated (or correlated) with Pgim Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pgim Global High has no effect on the direction of Virtus Allianzgi i.e., Virtus Allianzgi and Pgim Global go up and down completely randomly.

Pair Corralation between Virtus Allianzgi and Pgim Global

Considering the 90-day investment horizon Virtus Allianzgi Artificial is expected to under-perform the Pgim Global. In addition to that, Virtus Allianzgi is 2.06 times more volatile than Pgim Global High. It trades about -0.13 of its total potential returns per unit of risk. Pgim Global High is currently generating about 0.21 per unit of volatility. If you would invest  1,222  in Pgim Global High on December 27, 2024 and sell it today you would earn a total of  131.00  from holding Pgim Global High or generate 10.72% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.36%
Values	Daily Returns

Virtus Allianzgi Artificial  vs.  Pgim Global High

Virtus Allianzgi Art

Risk-Adjusted Performance

Very Weak

Over the last 90 days Virtus Allianzgi Artificial has generated negative risk-adjusted returns adding no value to fund investors. In spite of weak performance in the last few months, the Fund's forward indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the fund investors.

Pgim Global High

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Pgim Global High are ranked lower than 16 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly unsteady technical indicators, Pgim Global may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Virtus Allianzgi and Pgim Global

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

The idea behind Virtus Allianzgi Artificial and Pgim Global High 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.