Correlation Between Allianzgi Technology and First Eagle
Can any of the company-specific risk be diversified away by investing in both Allianzgi Technology and First Eagle 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 First Eagle 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 First Eagle Small, you can compare the effects of market volatilities on Allianzgi Technology and First Eagle 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 First Eagle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allianzgi Technology and First Eagle.
Diversification Opportunities for Allianzgi Technology and First Eagle
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Allianzgi and First is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Allianzgi Technology Fund and First Eagle Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Eagle Small 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 First Eagle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Eagle Small has no effect on the direction of Allianzgi Technology i.e., Allianzgi Technology and First Eagle go up and down completely randomly.
Pair Corralation between Allianzgi Technology and First Eagle
Assuming the 90 days horizon Allianzgi Technology Fund is expected to generate 1.18 times more return on investment than First Eagle. However, Allianzgi Technology is 1.18 times more volatile than First Eagle Small. It trades about 0.11 of its potential returns per unit of risk. First Eagle Small is currently generating about 0.07 per unit of risk. If you would invest 6,311 in Allianzgi Technology Fund on September 15, 2024 and sell it today you would earn a total of 3,076 from holding Allianzgi Technology Fund or generate 48.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.63% |
| Values | Daily Returns |
Allianzgi Technology Fund vs. First Eagle Small
Performance |
| Timeline |
| Allianzgi Technology |
| First Eagle Small |
Allianzgi Technology and First Eagle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allianzgi Technology and First Eagle
The main advantage of trading using opposite Allianzgi Technology and First Eagle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allianzgi Technology position performs unexpectedly, First Eagle 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 First Eagle will offset losses from the drop in First Eagle'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 |
| First Eagle vs. First Eagle Global | First Eagle vs. First Eagle Global | First Eagle vs. First Eagle Global | First Eagle vs. First Eagle 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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