Correlation Between American Funds and Allianzgi Convertible
Can any of the company-specific risk be diversified away by investing in both American Funds 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 American Funds and Allianzgi Convertible into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Funds Capital and Allianzgi Convertible Income, you can compare the effects of market volatilities on American Funds 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 American Funds with a short position of Allianzgi Convertible. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Funds and Allianzgi Convertible.
Diversification Opportunities for American Funds and Allianzgi Convertible
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between American and Allianzgi is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding American Funds Capital and Allianzgi Convertible Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allianzgi Convertible and American Funds 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 American Funds Capital 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 American Funds i.e., American Funds and Allianzgi Convertible go up and down completely randomly.
Pair Corralation between American Funds and Allianzgi Convertible
Assuming the 90 days horizon American Funds Capital is expected to generate 0.58 times more return on investment than Allianzgi Convertible. However, American Funds Capital is 1.71 times less risky than Allianzgi Convertible. It trades about 0.14 of its potential returns per unit of risk. Allianzgi Convertible Income is currently generating about 0.02 per unit of risk. If you would invest 6,903 in American Funds Capital on October 22, 2024 and sell it today you would earn a total of 89.00 from holding American Funds Capital or generate 1.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
American Funds Capital vs. Allianzgi Convertible Income
Performance |
| Timeline |
| American Funds Capital |
| Allianzgi Convertible |
American Funds and Allianzgi Convertible Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Funds and Allianzgi Convertible
The main advantage of trading using opposite American Funds and Allianzgi Convertible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Funds 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.| American Funds vs. Ab High Income | American Funds vs. Virtus High Yield | American Funds vs. Multi Manager High Yield | American Funds vs. Siit High Yield |
| Allianzgi Convertible vs. Dunham Real Estate | Allianzgi Convertible vs. American Century Real | Allianzgi Convertible vs. Columbia Real Estate | Allianzgi Convertible vs. Short Real Estate |
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 Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |