Correlation Between Allianzgi Convertible and Blackstone Gso

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

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

Diversification Opportunities for Allianzgi Convertible and Blackstone Gso

0.39

Correlation Coefficient

Allianzgi Convertible  Blackstone Gso

Weak diversification

The 3 months correlation between Allianzgi and Blackstone is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Allianzgi Convertible Income and Blackstone Gso Senior in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackstone Gso Senior and Allianzgi Convertible 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 Convertible Income are associated (or correlated) with Blackstone Gso. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackstone Gso Senior has no effect on the direction of Allianzgi Convertible i.e., Allianzgi Convertible and Blackstone Gso go up and down completely randomly.

Pair Corralation between Allianzgi Convertible and Blackstone Gso

Considering the 90-day investment horizon Allianzgi Convertible Income is expected to under-perform the Blackstone Gso. In addition to that, Allianzgi Convertible is 1.94 times more volatile than Blackstone Gso Senior. It trades about -0.06 of its total potential returns per unit of risk. Blackstone Gso Senior is currently generating about -0.06 per unit of volatility. If you would invest  1,432  in Blackstone Gso Senior on November 29, 2024 and sell it today you would lose (29.00) from holding Blackstone Gso Senior or give up 2.03% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.33%
Values	Daily Returns

Allianzgi Convertible Income  vs.  Blackstone Gso Senior

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 strong fundamental indicators, Allianzgi Convertible is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Blackstone Gso Senior

Risk-Adjusted Performance

Very Weak

Over the last 90 days Blackstone Gso Senior has generated negative risk-adjusted returns adding no value to fund investors. Despite quite persistent basic indicators, Blackstone Gso is not utilizing all of its potentials. The newest stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Allianzgi Convertible and Blackstone Gso

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

The idea behind Allianzgi Convertible Income and Blackstone Gso Senior 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.