Correlation Between Counterpoint Tactical and Allianzgi Health

Can any of the company-specific risk be diversified away by investing in both Counterpoint Tactical and Allianzgi Health 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 Counterpoint Tactical and Allianzgi Health into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Counterpoint Tactical Equity and Allianzgi Health Sciences, you can compare the effects of market volatilities on Counterpoint Tactical and Allianzgi Health 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 Counterpoint Tactical with a short position of Allianzgi Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Counterpoint Tactical and Allianzgi Health.

Diversification Opportunities for Counterpoint Tactical and Allianzgi Health

-0.69

Correlation Coefficient

Counterpoint Tactical  Allianzgi Health

Excellent diversification

The 3 months correlation between Counterpoint and Allianzgi is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Counterpoint Tactical Equity and Allianzgi Health Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allianzgi Health Sciences and Counterpoint Tactical 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 Counterpoint Tactical Equity are associated (or correlated) with Allianzgi Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allianzgi Health Sciences has no effect on the direction of Counterpoint Tactical i.e., Counterpoint Tactical and Allianzgi Health go up and down completely randomly.

Pair Corralation between Counterpoint Tactical and Allianzgi Health

Assuming the 90 days horizon Counterpoint Tactical Equity is expected to generate 1.07 times more return on investment than Allianzgi Health. However, Counterpoint Tactical is 1.07 times more volatile than Allianzgi Health Sciences. It trades about 0.19 of its potential returns per unit of risk. Allianzgi Health Sciences is currently generating about -0.17 per unit of risk. If you would invest  2,122  in Counterpoint Tactical Equity on September 15, 2024 and sell it today you would earn a total of  219.00  from holding Counterpoint Tactical Equity or generate 10.32% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	98.46%
Values	Daily Returns

Counterpoint Tactical Equity  vs.  Allianzgi Health Sciences

Counterpoint Tactical

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Counterpoint Tactical Equity are ranked lower than 15 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical and fundamental indicators, Counterpoint Tactical may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Allianzgi Health Sciences

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Allianzgi Health Sciences has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's technical 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 Counterpoint Tactical and Allianzgi Health

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

The idea behind Counterpoint Tactical Equity and Allianzgi Health Sciences 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..