Correlation Between Allianzgi Convertible and Teton Convertible
Can any of the company-specific risk be diversified away by investing in both Allianzgi Convertible and Teton 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 Allianzgi Convertible and Teton Convertible into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Allianzgi Vertible Fund and Teton Vertible Securities, you can compare the effects of market volatilities on Allianzgi Convertible and Teton 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 Allianzgi Convertible with a short position of Teton Convertible. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allianzgi Convertible and Teton Convertible.
Diversification Opportunities for Allianzgi Convertible and Teton Convertible
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Allianzgi and Teton is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Allianzgi Vertible Fund and Teton Vertible Securities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Teton Vertible Securities 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 Vertible Fund are associated (or correlated) with Teton Convertible. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Teton Vertible Securities has no effect on the direction of Allianzgi Convertible i.e., Allianzgi Convertible and Teton Convertible go up and down completely randomly.
Pair Corralation between Allianzgi Convertible and Teton Convertible
Assuming the 90 days horizon Allianzgi Convertible is expected to generate 1.09 times less return on investment than Teton Convertible. But when comparing it to its historical volatility, Allianzgi Vertible Fund is 1.04 times less risky than Teton Convertible. It trades about 0.53 of its potential returns per unit of risk. Teton Vertible Securities is currently generating about 0.56 of returns per unit of risk over similar time horizon. If you would invest 1,241 in Teton Vertible Securities on August 31, 2024 and sell it today you would earn a total of 105.00 from holding Teton Vertible Securities or generate 8.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Allianzgi Vertible Fund vs. Teton Vertible Securities
Performance |
| Timeline |
| Allianzgi Convertible |
| Teton Vertible Securities |
Allianzgi Convertible and Teton Convertible Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allianzgi Convertible and Teton Convertible
The main advantage of trading using opposite Allianzgi Convertible and Teton Convertible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allianzgi Convertible position performs unexpectedly, Teton 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 Teton Convertible will offset losses from the drop in Teton Convertible's long position.| Allianzgi Convertible vs. Maryland Tax Free Bond | Allianzgi Convertible vs. Ambrus Core Bond | Allianzgi Convertible vs. Touchstone Premium Yield | Allianzgi Convertible vs. Dreyfusstandish Global Fixed |
| Teton Convertible vs. Teton Westwood Small | Teton Convertible vs. Teton Westwood Equity | Teton Convertible vs. Teton Westwood Mighty | Teton Convertible vs. State Street Institutional |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |