Correlation Between Allianzgi Nfj and Allianzgi International

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

By analyzing existing cross correlation between Allianzgi Nfj Mid Cap and Allianzgi International Small Cap, you can compare the effects of market volatilities on Allianzgi Nfj and Allianzgi International 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 Allianzgi International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allianzgi Nfj and Allianzgi International.

Diversification Opportunities for Allianzgi Nfj and Allianzgi International

-0.25

Correlation Coefficient

Allianzgi Nfj  Allianzgi International

Very good diversification

The 3 months correlation between Allianzgi and Allianzgi is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Allianzgi Nfj Mid Cap and Allianzgi International Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allianzgi International 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 Mid Cap are associated (or correlated) with Allianzgi International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allianzgi International has no effect on the direction of Allianzgi Nfj i.e., Allianzgi Nfj and Allianzgi International go up and down completely randomly.

Pair Corralation between Allianzgi Nfj and Allianzgi International

Assuming the 90 days horizon Allianzgi Nfj Mid Cap is expected to generate 1.13 times more return on investment than Allianzgi International. However, Allianzgi Nfj is 1.13 times more volatile than Allianzgi International Small Cap. It trades about 0.36 of its potential returns per unit of risk. Allianzgi International Small Cap is currently generating about -0.07 per unit of risk. If you would invest  2,952  in Allianzgi Nfj Mid Cap on September 2, 2024 and sell it today you would earn a total of  161.00  from holding Allianzgi Nfj Mid Cap or generate 5.45% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Allianzgi Nfj Mid Cap  vs.  Allianzgi International Small

Allianzgi Nfj Mid

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Allianzgi Nfj Mid Cap are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Allianzgi Nfj is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Allianzgi International

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Allianzgi International Small Cap has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong fundamental indicators, Allianzgi International 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 Nfj and Allianzgi International

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

The idea behind Allianzgi Nfj Mid Cap and Allianzgi International Small Cap 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.