Correlation Between Allianzgi Technology and Emerging Europe
Can any of the company-specific risk be diversified away by investing in both Allianzgi Technology and Emerging Europe 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 Technology and Emerging Europe into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Allianzgi Technology Fund and Emerging Europe Fund, you can compare the effects of market volatilities on Allianzgi Technology and Emerging Europe 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 Technology with a short position of Emerging Europe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allianzgi Technology and Emerging Europe.
Diversification Opportunities for Allianzgi Technology and Emerging Europe
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Allianzgi and Emerging is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Allianzgi Technology Fund and Emerging Europe Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emerging Europe and Allianzgi Technology 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 Technology Fund are associated (or correlated) with Emerging Europe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emerging Europe has no effect on the direction of Allianzgi Technology i.e., Allianzgi Technology and Emerging Europe go up and down completely randomly.
Pair Corralation between Allianzgi Technology and Emerging Europe
If you would invest 7,715 in Allianzgi Technology Fund on September 1, 2024 and sell it today you would earn a total of 1,182 from holding Allianzgi Technology Fund or generate 15.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 0.79% |
| Values | Daily Returns |
Allianzgi Technology Fund vs. Emerging Europe Fund
Performance |
| Timeline |
| Allianzgi Technology |
| Emerging Europe |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Allianzgi Technology and Emerging Europe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allianzgi Technology and Emerging Europe
The main advantage of trading using opposite Allianzgi Technology and Emerging Europe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allianzgi Technology position performs unexpectedly, Emerging Europe 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 Emerging Europe will offset losses from the drop in Emerging Europe's long position.| Allianzgi Technology vs. Goldman Sachs Strategic | Allianzgi Technology vs. Red Oak Technology | Allianzgi Technology vs. Kinetics Internet Fund | Allianzgi Technology vs. Tomorrows Scholar College |
| Emerging Europe vs. Dreyfus Technology Growth | Emerging Europe vs. Allianzgi Technology Fund | Emerging Europe vs. Technology Ultrasector Profund | Emerging Europe vs. Blackrock Science Technology |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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