Correlation Between Allianzgi Nfj and Amg Gwk

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

By analyzing existing cross correlation between Allianzgi Nfj Mid Cap and Amg Gwk Small, you can compare the effects of market volatilities on Allianzgi Nfj and Amg Gwk 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 Amg Gwk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allianzgi Nfj and Amg Gwk.

Diversification Opportunities for Allianzgi Nfj and Amg Gwk

0.74

Correlation Coefficient

Allianzgi Nfj  Amg Gwk

Poor diversification

The 3 months correlation between Allianzgi and Amg is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Allianzgi Nfj Mid Cap and Amg Gwk Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amg Gwk Small 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 Mid Cap are associated (or correlated) with Amg Gwk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amg Gwk Small has no effect on the direction of Allianzgi Nfj i.e., Allianzgi Nfj and Amg Gwk go up and down completely randomly.

Pair Corralation between Allianzgi Nfj and Amg Gwk

Assuming the 90 days horizon Allianzgi Nfj Mid Cap is expected to under-perform the Amg Gwk. But the mutual fund apears to be less risky and, when comparing its historical volatility, Allianzgi Nfj Mid Cap is 1.49 times less risky than Amg Gwk. The mutual fund trades about -0.09 of its potential returns per unit of risk. The Amg Gwk Small is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  3,211  in Amg Gwk Small on October 9, 2024 and sell it today you would earn a total of  29.00  from holding Amg Gwk Small or generate 0.9% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.39%
Values	Daily Returns

Allianzgi Nfj Mid Cap  vs.  Amg Gwk Small

Allianzgi Nfj Mid

Risk-Adjusted Performance

0 of 100

Very Weak

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

Amg Gwk Small

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Amg Gwk Small are ranked lower than 1 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Amg Gwk 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 Amg Gwk

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

The idea behind Allianzgi Nfj Mid Cap and Amg Gwk Small 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..