Correlation Between Allianzgi Convertible and American Funds
Can any of the company-specific risk be diversified away by investing in both Allianzgi Convertible and American Funds 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 American Funds 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 American Funds 2015, you can compare the effects of market volatilities on Allianzgi Convertible and American Funds 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 American Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allianzgi Convertible and American Funds.
Diversification Opportunities for Allianzgi Convertible and American Funds
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Allianzgi and American is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Allianzgi Convertible Income and American Funds 2015 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Funds 2015 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 American Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Funds 2015 has no effect on the direction of Allianzgi Convertible i.e., Allianzgi Convertible and American Funds go up and down completely randomly.
Pair Corralation between Allianzgi Convertible and American Funds
Assuming the 90 days horizon Allianzgi Convertible Income is expected to generate 2.21 times more return on investment than American Funds. However, Allianzgi Convertible is 2.21 times more volatile than American Funds 2015. It trades about 0.19 of its potential returns per unit of risk. American Funds 2015 is currently generating about 0.18 per unit of risk. If you would invest 347.00 in Allianzgi Convertible Income on September 5, 2024 and sell it today you would earn a total of 59.00 from holding Allianzgi Convertible Income or generate 17.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Allianzgi Convertible Income vs. American Funds 2015
Performance |
Timeline |
Allianzgi Convertible |
American Funds 2015 |
Allianzgi Convertible and American Funds Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Allianzgi Convertible and American Funds
The main advantage of trading using opposite Allianzgi Convertible and American Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allianzgi Convertible position performs unexpectedly, American Funds 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 American Funds will offset losses from the drop in American Funds' long position.Allianzgi Convertible vs. Vanguard Total Stock | Allianzgi Convertible vs. Vanguard 500 Index | Allianzgi Convertible vs. Vanguard Total Stock | Allianzgi Convertible vs. Vanguard Total Stock |
American Funds vs. Gabelli Convertible And | American Funds vs. Allianzgi Convertible Income | American Funds vs. Virtus Convertible | American Funds vs. Rationalpier 88 Convertible |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |