Correlation Between Boyar Value and Allianzgi Technology
Can any of the company-specific risk be diversified away by investing in both Boyar Value and Allianzgi Technology 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 Boyar Value and Allianzgi Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boyar Value Fund and Allianzgi Technology Fund, you can compare the effects of market volatilities on Boyar Value and Allianzgi Technology 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 Boyar Value with a short position of Allianzgi Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boyar Value and Allianzgi Technology.
Diversification Opportunities for Boyar Value and Allianzgi Technology
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Boyar and Allianzgi is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Boyar Value Fund and Allianzgi Technology Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allianzgi Technology and Boyar Value 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 Boyar Value Fund are associated (or correlated) with Allianzgi Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allianzgi Technology has no effect on the direction of Boyar Value i.e., Boyar Value and Allianzgi Technology go up and down completely randomly.
Pair Corralation between Boyar Value and Allianzgi Technology
Assuming the 90 days horizon Boyar Value Fund is expected to generate 0.59 times more return on investment than Allianzgi Technology. However, Boyar Value Fund is 1.68 times less risky than Allianzgi Technology. It trades about -0.05 of its potential returns per unit of risk. Allianzgi Technology Fund is currently generating about -0.08 per unit of risk. If you would invest 2,945 in Boyar Value Fund on January 13, 2025 and sell it today you would lose (108.00) from holding Boyar Value Fund or give up 3.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Boyar Value Fund vs. Allianzgi Technology Fund
Performance |
| Timeline |
| Boyar Value Fund |
| Allianzgi Technology |
Boyar Value and Allianzgi Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boyar Value and Allianzgi Technology
The main advantage of trading using opposite Boyar Value and Allianzgi Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boyar Value position performs unexpectedly, Allianzgi Technology 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 Technology will offset losses from the drop in Allianzgi Technology's long position.| Boyar Value vs. Federated Clover Small | Boyar Value vs. Small Midcap Dividend Income | Boyar Value vs. Cardinal Small Cap | Boyar Value vs. Df Dent Small |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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