Correlation Between Virtus AllianzGI and Nuveen High

Can any of the company-specific risk be diversified away by investing in both Virtus AllianzGI and Nuveen High 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 Virtus AllianzGI and Nuveen High into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Virtus AllianzGI Convertible and Nuveen High Income, you can compare the effects of market volatilities on Virtus AllianzGI and Nuveen High 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 Virtus AllianzGI with a short position of Nuveen High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Virtus AllianzGI and Nuveen High.

Diversification Opportunities for Virtus AllianzGI and Nuveen High

-0.3

Correlation Coefficient

Virtus AllianzGI  Nuveen High

Very good diversification

The 3 months correlation between Virtus and Nuveen is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Virtus AllianzGI Convertible and Nuveen High Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuveen High Income and Virtus AllianzGI 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 Virtus AllianzGI Convertible are associated (or correlated) with Nuveen High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuveen High Income has no effect on the direction of Virtus AllianzGI i.e., Virtus AllianzGI and Nuveen High go up and down completely randomly.

Pair Corralation between Virtus AllianzGI and Nuveen High

If you would invest  2,182  in Virtus AllianzGI Convertible on September 2, 2024 and sell it today you would earn a total of  28.00  from holding Virtus AllianzGI Convertible or generate 1.28% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	1.56%
Values	Daily Returns

Virtus AllianzGI Convertible  vs.  Nuveen High Income

Virtus AllianzGI Con

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Virtus AllianzGI Convertible are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Virtus AllianzGI is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Nuveen High Income

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Nuveen High Income has generated negative risk-adjusted returns adding no value to fund investors. Despite somewhat strong basic indicators, Nuveen High is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Virtus AllianzGI and Nuveen High

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

The idea behind Virtus AllianzGI Convertible and Nuveen High Income 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.