Correlation Between Allianzgi Vertible and Western Asset

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

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

Diversification Opportunities for Allianzgi Vertible and Western Asset

-0.47

Correlation Coefficient

Allianzgi Vertible  Western Asset

Very good diversification

The 3 months correlation between Allianzgi and Western is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Allianzgi Vertible Fund and Western Asset Diversified in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Asset Diversified and Allianzgi Vertible 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 Vertible Fund are associated (or correlated) with Western Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Asset Diversified has no effect on the direction of Allianzgi Vertible i.e., Allianzgi Vertible and Western Asset go up and down completely randomly.

Pair Corralation between Allianzgi Vertible and Western Asset

If you would invest  3,167  in Allianzgi Vertible Fund on October 7, 2024 and sell it today you would earn a total of  0.00  from holding Allianzgi Vertible Fund or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	5.0%
Values	Daily Returns

Allianzgi Vertible Fund  vs.  Western Asset Diversified

Allianzgi Vertible

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Allianzgi Vertible Fund has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong primary indicators, Allianzgi Vertible is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Western Asset Diversified

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Western Asset Diversified has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong forward indicators, Western Asset is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Allianzgi Vertible and Western Asset

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

The idea behind Allianzgi Vertible Fund and Western Asset Diversified 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.