Correlation Between Allianzgi Nfj and Fisher Investments

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

Diversification Opportunities for Allianzgi Nfj and Fisher Investments

0.59

Correlation Coefficient

Allianzgi Nfj  Fisher Investments

Very weak diversification

The 3 months correlation between Allianzgi and Fisher is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Allianzgi Nfj Mid Cap and Fisher Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fisher Investments 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 Fisher Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fisher Investments has no effect on the direction of Allianzgi Nfj i.e., Allianzgi Nfj and Fisher Investments go up and down completely randomly.

Pair Corralation between Allianzgi Nfj and Fisher Investments

Assuming the 90 days horizon Allianzgi Nfj Mid Cap is expected to generate 0.65 times more return on investment than Fisher Investments. However, Allianzgi Nfj Mid Cap is 1.54 times less risky than Fisher Investments. It trades about 0.0 of its potential returns per unit of risk. Fisher Small Cap is currently generating about -0.18 per unit of risk. If you would invest  2,841  in Allianzgi Nfj Mid Cap on December 30, 2024 and sell it today you would lose (5.00) from holding Allianzgi Nfj Mid Cap or give up 0.18% of portfolio value over 90 days.

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

Allianzgi Nfj Mid Cap  vs.  Fisher Small Cap

Allianzgi Nfj Mid

Risk-Adjusted Performance

Very Weak

Over the last 90 days Allianzgi Nfj Mid Cap has generated negative risk-adjusted returns adding no value to fund investors. 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.

Fisher Investments

Risk-Adjusted Performance

Very Weak

Over the last 90 days Fisher Small Cap 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 fundamental indicators remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

Pair Trading with Allianzgi Nfj and Fisher Investments

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

The idea behind Allianzgi Nfj Mid Cap and Fisher 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.