Correlation Between Allianzgi Convertible and Western Asset
Can any of the company-specific risk be diversified away by investing in both Allianzgi Convertible and Western Asset 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 Western Asset 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 Western Asset High, you can compare the effects of market volatilities on Allianzgi Convertible and Western Asset 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 Western Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allianzgi Convertible and Western Asset.
Diversification Opportunities for Allianzgi Convertible and Western Asset
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Allianzgi and WESTERN is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Allianzgi Convertible Income and Western Asset High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Asset High 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 Western Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Asset High has no effect on the direction of Allianzgi Convertible i.e., Allianzgi Convertible and Western Asset go up and down completely randomly.
Pair Corralation between Allianzgi Convertible and Western Asset
Assuming the 90 days horizon Allianzgi Convertible Income is expected to generate 189.81 times more return on investment than Western Asset. However, Allianzgi Convertible is 189.81 times more volatile than Western Asset High. It trades about 0.12 of its potential returns per unit of risk. Western Asset High is currently generating about 0.07 per unit of risk. If you would invest 406.00 in Allianzgi Convertible Income on December 2, 2024 and sell it today you would earn a total of 1,101 from holding Allianzgi Convertible Income or generate 271.18% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Allianzgi Convertible Income vs. Western Asset High
Performance |
Timeline |
Allianzgi Convertible |
Western Asset High |
Allianzgi Convertible and Western Asset Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Allianzgi Convertible and Western Asset
The main advantage of trading using opposite Allianzgi Convertible and Western Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allianzgi Convertible position performs unexpectedly, Western Asset 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 Western Asset will offset losses from the drop in Western Asset's long position.Allianzgi Convertible vs. Health Care Fund | Allianzgi Convertible vs. Blackrock Health Sciences | Allianzgi Convertible vs. Invesco Global Health | Allianzgi Convertible vs. Tekla Healthcare Investors |
Western Asset vs. Franklin Mutual Beacon | Western Asset vs. Franklin Mutual Global | Western Asset vs. Franklin Mutual Global | Western Asset vs. Templeton Foreign Fund |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
Money Managers Screen money managers from public funds and ETFs managed around the world | |
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |