Correlation Between Issachar Fund and Allianzgi International

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

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

Diversification Opportunities for Issachar Fund and Allianzgi International

-0.51

Correlation Coefficient

Issachar Fund  Allianzgi International

Excellent diversification

The 3 months correlation between Issachar and Allianzgi is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Issachar Fund Class and Allianzgi International Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allianzgi International and Issachar 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 Issachar Fund Class are associated (or correlated) with Allianzgi International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allianzgi International has no effect on the direction of Issachar Fund i.e., Issachar Fund and Allianzgi International go up and down completely randomly.

Pair Corralation between Issachar Fund and Allianzgi International

Assuming the 90 days horizon Issachar Fund Class is expected to generate 1.21 times more return on investment than Allianzgi International. However, Issachar Fund is 1.21 times more volatile than Allianzgi International Small Cap. It trades about 0.03 of its potential returns per unit of risk. Allianzgi International Small Cap is currently generating about 0.02 per unit of risk. If you would invest  962.00  in Issachar Fund Class on September 28, 2024 and sell it today you would earn a total of  51.00  from holding Issachar Fund Class or generate 5.3% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	99.63%
Values	Daily Returns

Issachar Fund Class  vs.  Allianzgi International Small

Issachar Fund Class

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Issachar Fund Class are ranked lower than 7 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Issachar Fund may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Allianzgi International

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Allianzgi International Small Cap has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's fundamental indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Pair Trading with Issachar Fund and Allianzgi International

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

The idea behind Issachar Fund Class and Allianzgi International Small Cap 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.