Correlation Between Growth Fund and Allianzgi Focused

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

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

Diversification Opportunities for Growth Fund and Allianzgi Focused

0.96

Correlation Coefficient

Growth Fund  Allianzgi Focused

Almost no diversification

The 3 months correlation between Growth and Allianzgi is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Growth Fund Of and Allianzgi Focused Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allianzgi Focused Growth and Growth Fund 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 Growth Fund Of are associated (or correlated) with Allianzgi Focused. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allianzgi Focused Growth has no effect on the direction of Growth Fund i.e., Growth Fund and Allianzgi Focused go up and down completely randomly.

Pair Corralation between Growth Fund and Allianzgi Focused

Assuming the 90 days horizon Growth Fund is expected to generate 1.15 times less return on investment than Allianzgi Focused. But when comparing it to its historical volatility, Growth Fund Of is 1.23 times less risky than Allianzgi Focused. It trades about 0.21 of its potential returns per unit of risk. Allianzgi Focused Growth is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest  3,364  in Allianzgi Focused Growth on September 13, 2024 and sell it today you would earn a total of  415.00  from holding Allianzgi Focused Growth or generate 12.34% return on investment over 90 days.

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

Growth Fund Of  vs.  Allianzgi Focused Growth

Growth Fund

Risk-Adjusted Performance

16 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Growth Fund Of are ranked lower than 16 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak fundamental indicators, Growth Fund may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Allianzgi Focused Growth

Risk-Adjusted Performance

15 of 100

Good

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

Pair Trading with Growth Fund and Allianzgi Focused

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

The idea behind Growth Fund Of and Allianzgi Focused 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.