Correlation Between Allianzgi Convertible and General Money
Can any of the company-specific risk be diversified away by investing in both Allianzgi Convertible and General Money 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 Convertible and General Money into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Allianzgi Convertible Income and General Money Market, you can compare the effects of market volatilities on Allianzgi Convertible and General Money 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 Convertible with a short position of General Money. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allianzgi Convertible and General Money.
Diversification Opportunities for Allianzgi Convertible and General Money
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Allianzgi and General is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Allianzgi Convertible Income and General Money Market in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on General Money Market and Allianzgi Convertible 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 Convertible Income are associated (or correlated) with General Money. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of General Money Market has no effect on the direction of Allianzgi Convertible i.e., Allianzgi Convertible and General Money go up and down completely randomly.
Pair Corralation between Allianzgi Convertible and General Money
Assuming the 90 days horizon Allianzgi Convertible Income is expected to generate 0.86 times more return on investment than General Money. However, Allianzgi Convertible Income is 1.16 times less risky than General Money. It trades about 0.05 of its potential returns per unit of risk. General Money Market is currently generating about 0.02 per unit of risk. If you would invest 336.00 in Allianzgi Convertible Income on September 29, 2024 and sell it today you would earn a total of 55.00 from holding Allianzgi Convertible Income or generate 16.37% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 98.14% |
Values | Daily Returns |
Allianzgi Convertible Income vs. General Money Market
Performance |
Timeline |
Allianzgi Convertible |
General Money Market |
Allianzgi Convertible and General Money Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Allianzgi Convertible and General Money
The main advantage of trading using opposite Allianzgi Convertible and General Money positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allianzgi Convertible position performs unexpectedly, General Money 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 General Money will offset losses from the drop in General Money's long position.Allianzgi Convertible vs. Alliancebernstein Bond | Allianzgi Convertible vs. T Rowe Price | Allianzgi Convertible vs. Guidemark E Fixed | Allianzgi Convertible vs. Morningstar Defensive Bond |
General Money vs. Fidelity Sai Convertible | General Money vs. Allianzgi Convertible Income | General Money vs. Gabelli Convertible And | General Money vs. Advent Claymore Convertible |
Check out your portfolio center.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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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