Correlation Between Real Return and Allianzgi Nfj

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

By analyzing existing cross correlation between Real Return Fund and Allianzgi Nfj Small Cap, you can compare the effects of market volatilities on Real Return and Allianzgi Nfj 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 Real Return with a short position of Allianzgi Nfj. Check out your portfolio center. Please also check ongoing floating volatility patterns of Real Return and Allianzgi Nfj.

Diversification Opportunities for Real Return and Allianzgi Nfj

0.02

Correlation Coefficient

Real Return  Allianzgi Nfj

Significant diversification

The 3 months correlation between Real and Allianzgi is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Real Return Fund and Allianzgi Nfj Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allianzgi Nfj Small and Real Return 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 Real Return Fund are associated (or correlated) with Allianzgi Nfj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allianzgi Nfj Small has no effect on the direction of Real Return i.e., Real Return and Allianzgi Nfj go up and down completely randomly.

Pair Corralation between Real Return and Allianzgi Nfj

Assuming the 90 days horizon Real Return Fund is expected to generate 0.19 times more return on investment than Allianzgi Nfj. However, Real Return Fund is 5.4 times less risky than Allianzgi Nfj. It trades about -0.18 of its potential returns per unit of risk. Allianzgi Nfj Small Cap is currently generating about -0.04 per unit of risk. If you would invest  1,028  in Real Return Fund on September 26, 2024 and sell it today you would lose (32.00) from holding Real Return Fund or give up 3.11% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Real Return Fund  vs.  Allianzgi Nfj Small Cap

Real Return Fund

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Real Return Fund has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Real Return is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Allianzgi Nfj Small

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Allianzgi Nfj Small Cap has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Allianzgi Nfj is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Real Return and Allianzgi Nfj

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

The idea behind Real Return Fund and Allianzgi Nfj Small Cap 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.