Correlation Between Allianzgi Convertible and Dreyfus/the Boston

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

Diversification Opportunities for Allianzgi Convertible and Dreyfus/the Boston

0.39

Correlation Coefficient

Allianzgi Convertible  Dreyfus/the Boston

Weak diversification

The 3 months correlation between AllianzGI and Dreyfus/the is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Allianzgi Convertible Income and Dreyfusthe Boston Pany in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dreyfusthe Boston Pany 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 Dreyfus/the Boston. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dreyfusthe Boston Pany has no effect on the direction of Allianzgi Convertible i.e., Allianzgi Convertible and Dreyfus/the Boston go up and down completely randomly.

Pair Corralation between Allianzgi Convertible and Dreyfus/the Boston

Assuming the 90 days horizon Allianzgi Convertible is expected to generate 12.68 times less return on investment than Dreyfus/the Boston. But when comparing it to its historical volatility, Allianzgi Convertible Income is 1.02 times less risky than Dreyfus/the Boston. It trades about 0.02 of its potential returns per unit of risk. Dreyfusthe Boston Pany is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest  1,817  in Dreyfusthe Boston Pany on October 25, 2024 and sell it today you would earn a total of  79.00  from holding Dreyfusthe Boston Pany or generate 4.35% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	94.74%
Values	Daily Returns

Allianzgi Convertible Income  vs.  Dreyfusthe Boston Pany

Allianzgi Convertible

Risk-Adjusted Performance

6 of 100

Modest

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

Dreyfusthe Boston Pany

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Dreyfusthe Boston Pany 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 Convertible and Dreyfus/the Boston

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

The idea behind Allianzgi Convertible Income and Dreyfusthe Boston Pany 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.