Correlation Between Allianzgi Technology and First Eagle

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

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

Diversification Opportunities for Allianzgi Technology and First Eagle

0.0

Correlation Coefficient

Allianzgi Technology  First Eagle

Pay attention - limited upside

The 3 months correlation between Allianzgi and First is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Allianzgi Technology Fund and First Eagle Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Eagle Small and Allianzgi Technology 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 Technology Fund are associated (or correlated) with First Eagle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Eagle Small has no effect on the direction of Allianzgi Technology i.e., Allianzgi Technology and First Eagle go up and down completely randomly.

Pair Corralation between Allianzgi Technology and First Eagle

If you would invest  8,656  in Allianzgi Technology Fund on October 7, 2024 and sell it today you would earn a total of  599.00  from holding Allianzgi Technology Fund or generate 6.92% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.79%
Values	Daily Returns

Allianzgi Technology Fund  vs.  First Eagle Small

Allianzgi Technology

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Allianzgi Technology Fund are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Allianzgi Technology may actually be approaching a critical reversion point that can send shares even higher in February 2025.

First Eagle Small

Risk-Adjusted Performance

0 of 100

Weak

Over the last 90 days First Eagle Small has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, First Eagle 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 Technology and First Eagle

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

The idea behind Allianzgi Technology Fund and First Eagle Small 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.