Correlation Between Allianzgi Technology and Shenkman Floating
Can any of the company-specific risk be diversified away by investing in both Allianzgi Technology and Shenkman Floating 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 Shenkman Floating 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 Shenkman Floating Rate, you can compare the effects of market volatilities on Allianzgi Technology and Shenkman Floating 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 Shenkman Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allianzgi Technology and Shenkman Floating.
Diversification Opportunities for Allianzgi Technology and Shenkman Floating
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Allianzgi and Shenkman is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Allianzgi Technology Fund and Shenkman Floating Rate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenkman Floating Rate 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 Shenkman Floating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenkman Floating Rate has no effect on the direction of Allianzgi Technology i.e., Allianzgi Technology and Shenkman Floating go up and down completely randomly.
Pair Corralation between Allianzgi Technology and Shenkman Floating
Assuming the 90 days horizon Allianzgi Technology Fund is expected to generate 12.64 times more return on investment than Shenkman Floating. However, Allianzgi Technology is 12.64 times more volatile than Shenkman Floating Rate. It trades about 0.21 of its potential returns per unit of risk. Shenkman Floating Rate is currently generating about 0.24 per unit of risk. If you would invest 8,078 in Allianzgi Technology Fund on September 18, 2024 and sell it today you would earn a total of 1,355 from holding Allianzgi Technology Fund or generate 16.77% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Allianzgi Technology Fund vs. Shenkman Floating Rate
Performance |
Timeline |
Allianzgi Technology |
Shenkman Floating Rate |
Allianzgi Technology and Shenkman Floating Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Allianzgi Technology and Shenkman Floating
The main advantage of trading using opposite Allianzgi Technology and Shenkman Floating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allianzgi Technology position performs unexpectedly, Shenkman Floating 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 Shenkman Floating will offset losses from the drop in Shenkman Floating's long position.Allianzgi Technology vs. Goldman Sachs Strategic | Allianzgi Technology vs. Red Oak Technology | Allianzgi Technology vs. Kinetics Internet Fund | Allianzgi Technology vs. Tomorrows Scholar College |
Shenkman Floating vs. Allianzgi Technology Fund | Shenkman Floating vs. Dreyfus Technology Growth | Shenkman Floating vs. Biotechnology Ultrasector Profund | Shenkman Floating vs. Global Technology Portfolio |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
Bonds Directory Find actively traded corporate debentures issued by US companies |