Correlation Between Allianzgi Technology and Hcm Tactical

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

Diversification Opportunities for Allianzgi Technology and Hcm Tactical

0.59

Correlation Coefficient

Allianzgi Technology  Hcm Tactical

Very weak diversification

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

Pair Corralation between Allianzgi Technology and Hcm Tactical

Assuming the 90 days horizon Allianzgi Technology is expected to generate 1.15 times less return on investment than Hcm Tactical. But when comparing it to its historical volatility, Allianzgi Technology Fund is 1.33 times less risky than Hcm Tactical. It trades about 0.21 of its potential returns per unit of risk. Hcm Tactical Growth is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest  2,960  in Hcm Tactical Growth on September 13, 2024 and sell it today you would earn a total of  555.00  from holding Hcm Tactical Growth or generate 18.75% return on investment over 90 days.

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

Allianzgi Technology Fund  vs.  Hcm Tactical Growth

Allianzgi Technology

Risk-Adjusted Performance

16 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Allianzgi Technology Fund are ranked lower than 16 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Allianzgi Technology showed solid returns over the last few months and may actually be approaching a breakup point.

Hcm Tactical Growth

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Hcm Tactical Growth are ranked lower than 13 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Hcm Tactical showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Allianzgi Technology and Hcm Tactical

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

The idea behind Allianzgi Technology Fund and Hcm Tactical Growth 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .