Correlation Between College Retirement and Allianzgi International

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

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

Diversification Opportunities for College Retirement and Allianzgi International

-0.52

Correlation Coefficient

College Retirement  Allianzgi International

Excellent diversification

The 3 months correlation between College and Allianzgi is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding College Retirement Equities and Allianzgi International Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allianzgi International and College Retirement 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 College Retirement Equities are associated (or correlated) with Allianzgi International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allianzgi International has no effect on the direction of College Retirement i.e., College Retirement and Allianzgi International go up and down completely randomly.

Pair Corralation between College Retirement and Allianzgi International

Assuming the 90 days trading horizon College Retirement Equities is expected to generate 0.99 times more return on investment than Allianzgi International. However, College Retirement Equities is 1.01 times less risky than Allianzgi International. It trades about 0.09 of its potential returns per unit of risk. Allianzgi International Small Cap is currently generating about -0.04 per unit of risk. If you would invest  46,439  in College Retirement Equities on September 29, 2024 and sell it today you would earn a total of  4,732  from holding College Retirement Equities or generate 10.19% return on investment over 90 days.

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

College Retirement Equities  vs.  Allianzgi International Small

College Retirement

Risk-Adjusted Performance

6 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in College Retirement Equities are ranked lower than 6 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical and fundamental indicators, College Retirement is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Allianzgi International

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Allianzgi International Small Cap has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's fundamental indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Pair Trading with College Retirement and Allianzgi International

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

The idea behind College Retirement Equities and Allianzgi International Small Cap 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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.