Correlation Between Allianzgi Small and Allianzgi Nfj

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

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

Diversification Opportunities for Allianzgi Small and Allianzgi Nfj

-0.12

Correlation Coefficient

Allianzgi Small  Allianzgi Nfj

Good diversification

The 3 months correlation between Allianzgi and Allianzgi is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Allianzgi Small Cap Fund and Allianzgi Nfj International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allianzgi Nfj Intern and Allianzgi Small 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 Small Cap Fund are associated (or correlated) with Allianzgi Nfj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allianzgi Nfj Intern has no effect on the direction of Allianzgi Small i.e., Allianzgi Small and Allianzgi Nfj go up and down completely randomly.

Pair Corralation between Allianzgi Small and Allianzgi Nfj

Assuming the 90 days horizon Allianzgi Small Cap Fund is expected to under-perform the Allianzgi Nfj. In addition to that, Allianzgi Small is 2.18 times more volatile than Allianzgi Nfj International. It trades about -0.16 of its total potential returns per unit of risk. Allianzgi Nfj International is currently generating about 0.13 per unit of volatility. If you would invest  1,899  in Allianzgi Nfj International on December 1, 2024 and sell it today you would earn a total of  127.00  from holding Allianzgi Nfj International or generate 6.69% return on investment over 90 days.

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

Allianzgi Small Cap Fund  vs.  Allianzgi Nfj International

Allianzgi Small Cap

Risk-Adjusted Performance

Very Weak

Over the last 90 days Allianzgi Small Cap Fund 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 technical and 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.

Allianzgi Nfj Intern

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Allianzgi Nfj International are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Allianzgi Nfj may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Allianzgi Small and Allianzgi Nfj

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

The idea behind Allianzgi Small Cap Fund and Allianzgi Nfj International 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.