Correlation Between Allianzgi Technology and Hussman Strategic

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

Diversification Opportunities for Allianzgi Technology and Hussman Strategic

-0.7

Correlation Coefficient

Allianzgi Technology  Hussman Strategic

Excellent diversification

The 3 months correlation between Allianzgi and Hussman is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Allianzgi Technology Fund and Hussman Strategic Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hussman Strategic 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 Hussman Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hussman Strategic Growth has no effect on the direction of Allianzgi Technology i.e., Allianzgi Technology and Hussman Strategic go up and down completely randomly.

Pair Corralation between Allianzgi Technology and Hussman Strategic

Assuming the 90 days horizon Allianzgi Technology Fund is expected to under-perform the Hussman Strategic. In addition to that, Allianzgi Technology is 2.35 times more volatile than Hussman Strategic Growth. It trades about -0.11 of its total potential returns per unit of risk. Hussman Strategic Growth is currently generating about 0.2 per unit of volatility. If you would invest  544.00  in Hussman Strategic Growth on December 22, 2024 and sell it today you would earn a total of  54.00  from holding Hussman Strategic Growth or generate 9.93% return on investment over 90 days.

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

Allianzgi Technology Fund  vs.  Hussman Strategic Growth

Allianzgi Technology

Risk-Adjusted Performance

Very Weak

Over the last 90 days Allianzgi Technology 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 basic 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.

Hussman Strategic Growth

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Hussman Strategic Growth are ranked lower than 15 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical and fundamental indicators, Hussman Strategic may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Allianzgi Technology and Hussman Strategic

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

The idea behind Allianzgi Technology Fund and Hussman Strategic 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.