Correlation Between Barings Participation and Allianzgi Equity
Can any of the company-specific risk be diversified away by investing in both Barings Participation and Allianzgi Equity 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 Barings Participation and Allianzgi Equity into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barings Participation Investors and Allianzgi Equity Convertible, you can compare the effects of market volatilities on Barings Participation and Allianzgi Equity 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 Barings Participation with a short position of Allianzgi Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barings Participation and Allianzgi Equity.
Diversification Opportunities for Barings Participation and Allianzgi Equity
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Barings and Allianzgi is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Barings Participation Investor and Allianzgi Equity Convertible in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allianzgi Equity Con and Barings Participation 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 Barings Participation Investors are associated (or correlated) with Allianzgi Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allianzgi Equity Con has no effect on the direction of Barings Participation i.e., Barings Participation and Allianzgi Equity go up and down completely randomly.
Pair Corralation between Barings Participation and Allianzgi Equity
Considering the 90-day investment horizon Barings Participation is expected to generate 1.81 times less return on investment than Allianzgi Equity. But when comparing it to its historical volatility, Barings Participation Investors is 1.01 times less risky than Allianzgi Equity. It trades about 0.12 of its potential returns per unit of risk. Allianzgi Equity Convertible is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 2,253 in Allianzgi Equity Convertible on September 13, 2024 and sell it today you would earn a total of 240.00 from holding Allianzgi Equity Convertible or generate 10.65% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Barings Participation Investor vs. Allianzgi Equity Convertible
Performance |
Timeline |
Barings Participation |
Allianzgi Equity Con |
Barings Participation and Allianzgi Equity Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Barings Participation and Allianzgi Equity
The main advantage of trading using opposite Barings Participation and Allianzgi Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barings Participation position performs unexpectedly, Allianzgi Equity 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 Equity will offset losses from the drop in Allianzgi Equity's long position.Barings Participation vs. Allianzgi Equity Convertible | Barings Participation vs. Cohen Steers Total | Barings Participation vs. Blackrock Floating Rate | Barings Participation vs. MFS Investment Grade |
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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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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