Correlation Between Allianzgi Vertible and Allianzgi Focused

Can any of the company-specific risk be diversified away by investing in both Allianzgi Vertible and Allianzgi Focused 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 Allianzgi Focused 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 Allianzgi Focused Growth, you can compare the effects of market volatilities on Allianzgi Vertible and Allianzgi Focused 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 Allianzgi Focused. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allianzgi Vertible and Allianzgi Focused.

Diversification Opportunities for Allianzgi Vertible and Allianzgi Focused

0.92

Correlation Coefficient

Allianzgi Vertible  Allianzgi Focused

Almost no diversification

The 3 months correlation between Allianzgi and Allianzgi is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Allianzgi Vertible Fund and Allianzgi Focused Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allianzgi Focused Growth 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 Allianzgi Focused. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allianzgi Focused Growth has no effect on the direction of Allianzgi Vertible i.e., Allianzgi Vertible and Allianzgi Focused go up and down completely randomly.

Pair Corralation between Allianzgi Vertible and Allianzgi Focused

Assuming the 90 days horizon Allianzgi Vertible Fund is expected to generate 0.53 times more return on investment than Allianzgi Focused. However, Allianzgi Vertible Fund is 1.88 times less risky than Allianzgi Focused. It trades about 0.37 of its potential returns per unit of risk. Allianzgi Focused Growth is currently generating about 0.19 per unit of risk. If you would invest  3,295  in Allianzgi Vertible Fund on August 31, 2024 and sell it today you would earn a total of  447.00  from holding Allianzgi Vertible Fund or generate 13.57% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	98.44%
Values	Daily Returns

Allianzgi Vertible Fund  vs.  Allianzgi Focused Growth

Allianzgi Vertible

Risk-Adjusted Performance

29 of 100

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Allianzgi Vertible Fund are ranked lower than 29 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Allianzgi Vertible showed solid returns over the last few months and may actually be approaching a breakup point.

Allianzgi Focused Growth

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Allianzgi Focused Growth are ranked lower than 15 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Allianzgi Focused may actually be approaching a critical reversion point that can send shares even higher in December 2024.

Pair Trading with Allianzgi Vertible and Allianzgi Focused

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

The idea behind Allianzgi Vertible Fund and Allianzgi Focused Growth 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.