Correlation Between Allianzgi Convertible and Voya Asia

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

Diversification Opportunities for Allianzgi Convertible and Voya Asia

0.01

Correlation Coefficient

Allianzgi Convertible  Voya Asia

Significant diversification

The 3 months correlation between Allianzgi and Voya is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Allianzgi Convertible Income and Voya Asia Pacific in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Asia Pacific 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 Voya Asia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Asia Pacific has no effect on the direction of Allianzgi Convertible i.e., Allianzgi Convertible and Voya Asia go up and down completely randomly.

Pair Corralation between Allianzgi Convertible and Voya Asia

Considering the 90-day investment horizon Allianzgi Convertible Income is expected to generate 1.0 times more return on investment than Voya Asia. However, Allianzgi Convertible Income is 1.0 times less risky than Voya Asia. It trades about 0.19 of its potential returns per unit of risk. Voya Asia Pacific is currently generating about 0.0 per unit of risk. If you would invest  291.00  in Allianzgi Convertible Income on September 1, 2024 and sell it today you would earn a total of  42.00  from holding Allianzgi Convertible Income or generate 14.43% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Allianzgi Convertible Income  vs.  Voya Asia Pacific

Allianzgi Convertible

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Allianzgi Convertible Income are ranked lower than 14 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly abnormal fundamental indicators, Allianzgi Convertible showed solid returns over the last few months and may actually be approaching a breakup point.

Voya Asia Pacific

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Voya Asia Pacific has generated negative risk-adjusted returns adding no value to fund investors. In spite of rather sound basic indicators, Voya Asia is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Allianzgi Convertible and Voya Asia

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

The idea behind Allianzgi Convertible Income and Voya Asia Pacific 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.