Correlation Between Allianzgi Convertible and Nuveen Global

Can any of the company-specific risk be diversified away by investing in both Allianzgi Convertible and Nuveen Global 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 Convertible and Nuveen Global 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 Nuveen Global Infrastructure, you can compare the effects of market volatilities on Allianzgi Convertible and Nuveen Global 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 Convertible with a short position of Nuveen Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allianzgi Convertible and Nuveen Global.

Diversification Opportunities for Allianzgi Convertible and Nuveen Global

-0.14

Correlation Coefficient

Allianzgi Convertible  Nuveen Global

Good diversification

The 3 months correlation between Allianzgi and Nuveen is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Allianzgi Vertible Fund and Nuveen Global Infrastructure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen Global Infras and Allianzgi Convertible 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 Nuveen Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen Global Infras has no effect on the direction of Allianzgi Convertible i.e., Allianzgi Convertible and Nuveen Global go up and down completely randomly.

Pair Corralation between Allianzgi Convertible and Nuveen Global

Assuming the 90 days horizon Allianzgi Vertible Fund is expected to under-perform the Nuveen Global. In addition to that, Allianzgi Convertible is 1.0 times more volatile than Nuveen Global Infrastructure. It trades about -0.05 of its total potential returns per unit of risk. Nuveen Global Infrastructure is currently generating about 0.13 per unit of volatility. If you would invest  1,130  in Nuveen Global Infrastructure on December 30, 2024 and sell it today you would earn a total of  69.00  from holding Nuveen Global Infrastructure or generate 6.11% return on investment over 90 days.

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

Allianzgi Vertible Fund  vs.  Nuveen Global Infrastructure

Allianzgi Convertible

Risk-Adjusted Performance

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 fundamental indicators, Allianzgi Convertible is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Nuveen Global Infras

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Nuveen Global Infrastructure are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Nuveen Global 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 Convertible and Nuveen Global

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

The idea behind Allianzgi Vertible Fund and Nuveen Global Infrastructure 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 Transaction History module to view history of all your transactions and understand their impact on performance.