Correlation Between Allianzgi Vertible and Hanlon Tactical

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

Diversification Opportunities for Allianzgi Vertible and Hanlon Tactical

0.95

Correlation Coefficient

Allianzgi Vertible  Hanlon Tactical

Almost no diversification

The 3 months correlation between Allianzgi and Hanlon is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Allianzgi Vertible Fund and Hanlon Tactical Dividend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hanlon Tactical Dividend 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 Hanlon Tactical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hanlon Tactical Dividend has no effect on the direction of Allianzgi Vertible i.e., Allianzgi Vertible and Hanlon Tactical go up and down completely randomly.

Pair Corralation between Allianzgi Vertible and Hanlon Tactical

Assuming the 90 days horizon Allianzgi Vertible is expected to generate 1.15 times less return on investment than Hanlon Tactical. But when comparing it to its historical volatility, Allianzgi Vertible Fund is 1.16 times less risky than Hanlon Tactical. It trades about 0.11 of its potential returns per unit of risk. Hanlon Tactical Dividend is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  1,061  in Hanlon Tactical Dividend on October 6, 2024 and sell it today you would earn a total of  277.00  from holding Hanlon Tactical Dividend or generate 26.11% return on investment over 90 days.

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

Allianzgi Vertible Fund  vs.  Hanlon Tactical Dividend

Allianzgi Vertible

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Allianzgi Vertible Fund 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 Vertible is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Hanlon Tactical Dividend

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Hanlon Tactical Dividend are ranked lower than 6 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Hanlon Tactical 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 Hanlon Tactical

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

The idea behind Allianzgi Vertible Fund and Hanlon Tactical Dividend 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.

Check out your portfolio center.

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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..