Correlation Between Allianzgi Nfj and Real Return

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

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

Diversification Opportunities for Allianzgi Nfj and Real Return

-0.51

Correlation Coefficient

Allianzgi Nfj  Real Return

Excellent diversification

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

Pair Corralation between Allianzgi Nfj and Real Return

Assuming the 90 days horizon Allianzgi Nfj Small Cap is expected to generate 4.03 times more return on investment than Real Return. However, Allianzgi Nfj is 4.03 times more volatile than Real Return Fund. It trades about 0.13 of its potential returns per unit of risk. Real Return Fund is currently generating about -0.02 per unit of risk. If you would invest  1,247  in Allianzgi Nfj Small Cap on September 3, 2024 and sell it today you would earn a total of  113.00  from holding Allianzgi Nfj Small Cap or generate 9.06% return on investment over 90 days.

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

Allianzgi Nfj Small Cap  vs.  Real Return Fund

Allianzgi Nfj Small

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Allianzgi Nfj Small Cap are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Allianzgi Nfj may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Real Return Fund

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Real Return Fund has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Real Return is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Allianzgi Nfj and Real Return

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

The idea behind Allianzgi Nfj Small Cap and Real Return Fund 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..