Correlation Between Eagle Point and Allianzgi Convertible
Can any of the company-specific risk be diversified away by investing in both Eagle Point and Allianzgi 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 Eagle Point and Allianzgi Convertible into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eagle Point Credit and Allianzgi Convertible Income, you can compare the effects of market volatilities on Eagle Point and Allianzgi 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 Eagle Point with a short position of Allianzgi Convertible. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagle Point and Allianzgi Convertible.
Diversification Opportunities for Eagle Point and Allianzgi Convertible
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eagle and Allianzgi is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Point Credit and Allianzgi Convertible Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allianzgi Convertible and Eagle Point 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 Eagle Point Credit are associated (or correlated) with Allianzgi Convertible. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allianzgi Convertible has no effect on the direction of Eagle Point i.e., Eagle Point and Allianzgi Convertible go up and down completely randomly.
Pair Corralation between Eagle Point and Allianzgi Convertible
Considering the 90-day investment horizon Eagle Point Credit is expected to under-perform the Allianzgi Convertible. But the stock apears to be less risky and, when comparing its historical volatility, Eagle Point Credit is 2.38 times less risky than Allianzgi Convertible. The stock trades about -0.23 of its potential returns per unit of risk. The Allianzgi Convertible Income is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 343.00 in Allianzgi Convertible Income on November 2, 2024 and sell it today you would earn a total of 22.00 from holding Allianzgi Convertible Income or generate 6.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eagle Point Credit vs. Allianzgi Convertible Income
Performance |
| Timeline |
| Eagle Point Credit |
| Allianzgi Convertible |
Eagle Point and Allianzgi Convertible Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eagle Point and Allianzgi Convertible
The main advantage of trading using opposite Eagle Point and Allianzgi Convertible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagle Point position performs unexpectedly, Allianzgi 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 Allianzgi Convertible will offset losses from the drop in Allianzgi Convertible's long position.| Eagle Point vs. Cornerstone Strategic Return | Eagle Point vs. Cornerstone Strategic Value | Eagle Point vs. Oxford Square Capital | Eagle Point vs. Guggenheim Strategic Opportunities |
| Allianzgi Convertible vs. Munivest Fund | Allianzgi Convertible vs. MFS High Income | Allianzgi Convertible vs. Franklin Templeton Limited | Allianzgi Convertible vs. Clough Global Ef |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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