Correlation Between Macquariefirst and Allianzgi Convertible

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

By analyzing existing cross correlation between Macquariefirst Tr Global and Allianzgi Convertible Income, you can compare the effects of market volatilities on Macquariefirst and Allianzgi Convertible 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 Macquariefirst with a short position of Allianzgi Convertible. Check out your portfolio center. Please also check ongoing floating volatility patterns of Macquariefirst and Allianzgi Convertible.

Diversification Opportunities for Macquariefirst and Allianzgi Convertible

0.0

Correlation Coefficient

Macquariefirst  Allianzgi Convertible

Pay attention - limited upside

The 3 months correlation between Macquariefirst and Allianzgi is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Macquariefirst Tr Global and Allianzgi Convertible Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allianzgi Convertible and Macquariefirst 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 Macquariefirst Tr Global are associated (or correlated) with Allianzgi Convertible. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allianzgi Convertible has no effect on the direction of Macquariefirst i.e., Macquariefirst and Allianzgi Convertible go up and down completely randomly.

Pair Corralation between Macquariefirst and Allianzgi Convertible

If you would invest (100.00) in Macquariefirst Tr Global on December 1, 2024 and sell it today you would earn a total of  100.00  from holding Macquariefirst Tr Global or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Macquariefirst Tr Global  vs.  Allianzgi Convertible Income

Macquariefirst Tr Global

Risk-Adjusted Performance

Very Weak

Over the last 90 days Macquariefirst Tr Global has generated negative risk-adjusted returns adding no value to fund investors. In spite of rather sound technical and fundamental indicators, Macquariefirst is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Allianzgi Convertible

Risk-Adjusted Performance

Very Weak

Over the last 90 days Allianzgi Convertible Income has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly stable fundamental indicators, Allianzgi Convertible is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Macquariefirst and Allianzgi Convertible

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

The idea behind Macquariefirst Tr Global and Allianzgi Convertible Income 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.