Correlation Between Federated Global and Allianzgi Income
Can any of the company-specific risk be diversified away by investing in both Federated Global and Allianzgi Income 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 Federated Global and Allianzgi Income into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Federated Global Allocation and Allianzgi Income Growth, you can compare the effects of market volatilities on Federated Global and Allianzgi Income 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 Federated Global with a short position of Allianzgi Income. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federated Global and Allianzgi Income.
Diversification Opportunities for Federated Global and Allianzgi Income
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Federated and Allianzgi is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Federated Global Allocation and Allianzgi Income Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allianzgi Income Growth and Federated Global 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 Federated Global Allocation are associated (or correlated) with Allianzgi Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allianzgi Income Growth has no effect on the direction of Federated Global i.e., Federated Global and Allianzgi Income go up and down completely randomly.
Pair Corralation between Federated Global and Allianzgi Income
Assuming the 90 days horizon Federated Global Allocation is expected to generate 0.98 times more return on investment than Allianzgi Income. However, Federated Global Allocation is 1.02 times less risky than Allianzgi Income. It trades about 0.07 of its potential returns per unit of risk. Allianzgi Income Growth is currently generating about 0.05 per unit of risk. If you would invest 1,676 in Federated Global Allocation on September 3, 2024 and sell it today you would earn a total of 334.00 from holding Federated Global Allocation or generate 19.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Federated Global Allocation vs. Allianzgi Income Growth
Performance |
| Timeline |
| Federated Global All |
| Allianzgi Income Growth |
Federated Global and Allianzgi Income Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federated Global and Allianzgi Income
The main advantage of trading using opposite Federated Global and Allianzgi Income positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federated Global position performs unexpectedly, Allianzgi Income 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 Income will offset losses from the drop in Allianzgi Income's long position.| Federated Global vs. Federated Max Cap Index | Federated Global vs. Federated Kaufmann Fund | Federated Global vs. Federated Strategic Income | Federated Global vs. Federated Bond Fund |
| Allianzgi Income vs. Ep Emerging Markets | Allianzgi Income vs. Commodities Strategy Fund | Allianzgi Income vs. Artisan Emerging Markets | Allianzgi Income vs. Black Oak Emerging |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |