Correlation Between Allianzgi Global and Allianzgi Global

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

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

Diversification Opportunities for Allianzgi Global and Allianzgi Global

0.76

Correlation Coefficient

Allianzgi Global  Allianzgi Global

Poor diversification

The 3 months correlation between Allianzgi and Allianzgi is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Allianzgi Global Small Cap and Allianzgi Global Sustainabilit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allianzgi Global Sus and Allianzgi Global 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 Global Small Cap are associated (or correlated) with Allianzgi Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allianzgi Global Sus has no effect on the direction of Allianzgi Global i.e., Allianzgi Global and Allianzgi Global go up and down completely randomly.

Pair Corralation between Allianzgi Global and Allianzgi Global

Assuming the 90 days horizon Allianzgi Global Small Cap is expected to generate 0.77 times more return on investment than Allianzgi Global. However, Allianzgi Global Small Cap is 1.3 times less risky than Allianzgi Global. It trades about -0.01 of its potential returns per unit of risk. Allianzgi Global Sustainability is currently generating about -0.04 per unit of risk. If you would invest  2,337  in Allianzgi Global Small Cap on September 28, 2024 and sell it today you would lose (78.00) from holding Allianzgi Global Small Cap or give up 3.34% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	99.63%
Values	Daily Returns

Allianzgi Global Small Cap  vs.  Allianzgi Global Sustainabilit

Allianzgi Global Small

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Allianzgi Global Small Cap has generated negative risk-adjusted returns adding no value to fund investors. In spite of weak performance in the last few months, the Fund's fundamental indicators remain fairly strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

Allianzgi Global Sus

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Allianzgi Global Sustainability has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's basic 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 Allianzgi Global and Allianzgi Global

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

The idea behind Allianzgi Global Small Cap and Allianzgi Global Sustainability 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.