Correlation Between Chia and Allianzgi Global

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Can any of the company-specific risk be diversified away by investing in both Chia 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 Chia and Allianzgi Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chia and Allianzgi Global Water, you can compare the effects of market volatilities on Chia 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 Chia with a short position of Allianzgi Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chia and Allianzgi Global.

Diversification Opportunities for Chia and Allianzgi Global

ChiaAllianzgiDiversified AwayChiaAllianzgiDiversified Away100%
0.13
  Correlation Coefficient

Average diversification

The 3 months correlation between Chia and Allianzgi is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Chia and Allianzgi Global Water in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allianzgi Global Water and Chia 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 Chia 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 Water has no effect on the direction of Chia i.e., Chia and Allianzgi Global go up and down completely randomly.

Pair Corralation between Chia and Allianzgi Global

Assuming the 90 days trading horizon Chia is expected to generate 6.67 times more return on investment than Allianzgi Global. However, Chia is 6.67 times more volatile than Allianzgi Global Water. It trades about 0.1 of its potential returns per unit of risk. Allianzgi Global Water is currently generating about -0.12 per unit of risk. If you would invest  1,342  in Chia on October 25, 2024 and sell it today you would earn a total of  604.00  from holding Chia or generate 45.01% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy92.19%
ValuesDaily Returns

Chia  vs.  Allianzgi Global Water

 Performance 
JavaScript chart by amCharts 3.21.15NovDec2025 050100150
JavaScript chart by amCharts 3.21.15XCH AWTIX
       Timeline  
Chia 

Risk-Adjusted Performance

7 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Chia are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady technical indicators, Chia exhibited solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan1520253035
Allianzgi Global Water 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Allianzgi Global Water has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's forward indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan1818.51919.52020.52121.5

Chia and Allianzgi Global Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-30.82-23.08-15.35-7.610.07.8716.0124.1532.2940.43 0.050.100.15
JavaScript chart by amCharts 3.21.15XCH AWTIX
       Returns  

Pair Trading with Chia and Allianzgi Global

The main advantage of trading using opposite Chia and Allianzgi Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chia 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 Chia and Allianzgi Global Water 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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.

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