Correlation Between Allianzgi Nfj and American Funds
Can any of the company-specific risk be diversified away by investing in both Allianzgi Nfj 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 Nfj 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 Nfj Mid Cap and American Funds 2040, you can compare the effects of market volatilities on Allianzgi Nfj 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 Nfj with a short position of American Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allianzgi Nfj and American Funds.
Diversification Opportunities for Allianzgi Nfj and American Funds
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Allianzgi and American is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Allianzgi Nfj Mid Cap and American Funds 2040 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Funds 2040 and Allianzgi Nfj 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 Nfj Mid Cap 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 2040 has no effect on the direction of Allianzgi Nfj i.e., Allianzgi Nfj and American Funds go up and down completely randomly.
Pair Corralation between Allianzgi Nfj and American Funds
Assuming the 90 days horizon Allianzgi Nfj is expected to generate 1.44 times less return on investment than American Funds. In addition to that, Allianzgi Nfj is 1.54 times more volatile than American Funds 2040. It trades about 0.06 of its total potential returns per unit of risk. American Funds 2040 is currently generating about 0.14 per unit of volatility. If you would invest 1,764 in American Funds 2040 on September 15, 2024 and sell it today you would earn a total of 438.00 from holding American Funds 2040 or generate 24.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.63% |
| Values | Daily Returns |
Allianzgi Nfj Mid Cap vs. American Funds 2040
Performance |
| Timeline |
| Allianzgi Nfj Mid |
| American Funds 2040 |
Allianzgi Nfj and American Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allianzgi Nfj and American Funds
The main advantage of trading using opposite Allianzgi Nfj and American Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allianzgi Nfj 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 Nfj vs. Eaton Vance Worldwide | Allianzgi Nfj vs. Calamos Growth Fund | Allianzgi Nfj vs. Allianzgi Nfj Small Cap | Allianzgi Nfj vs. Real Return Fund |
| American Funds vs. Income Fund Of | American Funds vs. New World Fund | American Funds vs. American Mutual Fund | American Funds vs. American Mutual Fund |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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