Correlation Between Allianzgi Equity and Nuveen Preferred

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

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

Diversification Opportunities for Allianzgi Equity and Nuveen Preferred

0.0

Correlation Coefficient

Allianzgi Equity  Nuveen Preferred

Pay attention - limited upside

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

Pair Corralation between Allianzgi Equity and Nuveen Preferred

If you would invest (100.00) in Nuveen Preferred And on December 28, 2024 and sell it today you would earn a total of  100.00  from holding Nuveen Preferred And 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

Allianzgi Equity Convertible  vs.  Nuveen Preferred And

Allianzgi Equity Con

Risk-Adjusted Performance

Very Weak

Over the last 90 days Allianzgi Equity Convertible has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest inconsistent performance, the Fund's forward indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the fund shareholders.

Nuveen Preferred And

Risk-Adjusted Performance

Very Weak

Over the last 90 days Nuveen Preferred And has generated negative risk-adjusted returns adding no value to fund investors. In spite of comparatively stable basic indicators, Nuveen Preferred is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Allianzgi Equity and Nuveen Preferred

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

The idea behind Allianzgi Equity Convertible and Nuveen Preferred And 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.