Correlation Between Allianzgi Convertible and Jpmorgan Mid

Can any of the company-specific risk be diversified away by investing in both Allianzgi Convertible and Jpmorgan Mid 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 Jpmorgan Mid 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 Jpmorgan Mid Cap, you can compare the effects of market volatilities on Allianzgi Convertible and Jpmorgan Mid 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 Jpmorgan Mid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allianzgi Convertible and Jpmorgan Mid.

Diversification Opportunities for Allianzgi Convertible and Jpmorgan Mid

-0.55

Correlation Coefficient

Allianzgi Convertible  Jpmorgan Mid

Excellent diversification

The 3 months correlation between Allianzgi and Jpmorgan is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Allianzgi Convertible Income and Jpmorgan Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jpmorgan Mid Cap 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 Jpmorgan Mid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jpmorgan Mid Cap has no effect on the direction of Allianzgi Convertible i.e., Allianzgi Convertible and Jpmorgan Mid go up and down completely randomly.

Pair Corralation between Allianzgi Convertible and Jpmorgan Mid

Assuming the 90 days horizon Allianzgi Convertible Income is expected to generate 25.18 times more return on investment than Jpmorgan Mid. However, Allianzgi Convertible is 25.18 times more volatile than Jpmorgan Mid Cap. It trades about 0.13 of its potential returns per unit of risk. Jpmorgan Mid Cap is currently generating about -0.08 per unit of risk. If you would invest  380.00  in Allianzgi Convertible Income on December 28, 2024 and sell it today you would earn a total of  1,089  from holding Allianzgi Convertible Income or generate 286.58% return on investment over 90 days.

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

Allianzgi Convertible Income  vs.  Jpmorgan Mid Cap

Allianzgi Convertible

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Allianzgi Convertible Income are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Allianzgi Convertible showed solid returns over the last few months and may actually be approaching a breakup point.

Jpmorgan Mid Cap

Risk-Adjusted Performance

Very Weak

Over the last 90 days Jpmorgan Mid Cap 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.

Pair Trading with Allianzgi Convertible and Jpmorgan Mid

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

The idea behind Allianzgi Convertible Income and Jpmorgan Mid 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.