Correlation Between Aberdeen Global and Allianzgi Convertible
Can any of the company-specific risk be diversified away by investing in both Aberdeen Global and Allianzgi Convertible 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 Aberdeen Global and Allianzgi Convertible into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aberdeen Global Dynamic and Allianzgi Convertible Income, you can compare the effects of market volatilities on Aberdeen Global and Allianzgi Convertible 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 Aberdeen Global with a short position of Allianzgi Convertible. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aberdeen Global and Allianzgi Convertible.
Diversification Opportunities for Aberdeen Global and Allianzgi Convertible
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Aberdeen and Allianzgi is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Aberdeen Global Dynamic and Allianzgi Convertible Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allianzgi Convertible and Aberdeen Global 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 Aberdeen Global Dynamic are associated (or correlated) with Allianzgi Convertible. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allianzgi Convertible has no effect on the direction of Aberdeen Global i.e., Aberdeen Global and Allianzgi Convertible go up and down completely randomly.
Pair Corralation between Aberdeen Global and Allianzgi Convertible
Considering the 90-day investment horizon Aberdeen Global is expected to generate 5.27 times less return on investment than Allianzgi Convertible. But when comparing it to its historical volatility, Aberdeen Global Dynamic is 1.68 times less risky than Allianzgi Convertible. It trades about 0.16 of its potential returns per unit of risk. Allianzgi Convertible Income is currently generating about 0.49 of returns per unit of risk over similar time horizon. If you would invest 335.00 in Allianzgi Convertible Income on September 1, 2024 and sell it today you would earn a total of 37.00 from holding Allianzgi Convertible Income or generate 11.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Aberdeen Global Dynamic vs. Allianzgi Convertible Income
Performance |
| Timeline |
| Aberdeen Global Dynamic |
| Allianzgi Convertible |
Aberdeen Global and Allianzgi Convertible Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aberdeen Global and Allianzgi Convertible
The main advantage of trading using opposite Aberdeen Global and Allianzgi Convertible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aberdeen Global position performs unexpectedly, Allianzgi Convertible 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 Convertible will offset losses from the drop in Allianzgi Convertible's long position.| Aberdeen Global vs. Blackrock Resources Commodities | Aberdeen Global vs. Aberdeen Total Dynamic | Aberdeen Global vs. Blackrock Enhanced Equity | Aberdeen Global vs. Cbre Clarion Global |
| Allianzgi Convertible vs. Munivest Fund | Allianzgi Convertible vs. MFS High Income | Allianzgi Convertible vs. Franklin Templeton Limited | Allianzgi Convertible vs. Clough Global Ef |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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