Correlation Between Kellner Merger and Allianzgi Diversified
Can any of the company-specific risk be diversified away by investing in both Kellner Merger and Allianzgi Diversified 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 Kellner Merger and Allianzgi Diversified into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kellner Merger Fund and Allianzgi Diversified Income, you can compare the effects of market volatilities on Kellner Merger and Allianzgi Diversified 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 Kellner Merger with a short position of Allianzgi Diversified. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kellner Merger and Allianzgi Diversified.
Diversification Opportunities for Kellner Merger and Allianzgi Diversified
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kellner and Allianzgi is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Kellner Merger Fund and Allianzgi Diversified Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allianzgi Diversified and Kellner Merger 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 Kellner Merger Fund are associated (or correlated) with Allianzgi Diversified. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allianzgi Diversified has no effect on the direction of Kellner Merger i.e., Kellner Merger and Allianzgi Diversified go up and down completely randomly.
Pair Corralation between Kellner Merger and Allianzgi Diversified
Assuming the 90 days horizon Kellner Merger Fund is expected to under-perform the Allianzgi Diversified. But the mutual fund apears to be less risky and, when comparing its historical volatility, Kellner Merger Fund is 3.28 times less risky than Allianzgi Diversified. The mutual fund trades about -0.01 of its potential returns per unit of risk. The Allianzgi Diversified Income is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,741 in Allianzgi Diversified Income on September 12, 2024 and sell it today you would earn a total of 566.00 from holding Allianzgi Diversified Income or generate 32.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.72% |
| Values | Daily Returns |
Kellner Merger Fund vs. Allianzgi Diversified Income
Performance |
| Timeline |
| Kellner Merger |
| Allianzgi Diversified |
Kellner Merger and Allianzgi Diversified Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kellner Merger and Allianzgi Diversified
The main advantage of trading using opposite Kellner Merger and Allianzgi Diversified positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kellner Merger position performs unexpectedly, Allianzgi Diversified 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 Diversified will offset losses from the drop in Allianzgi Diversified's long position.| Kellner Merger vs. Allianzgi Diversified Income | Kellner Merger vs. Federated Hermes Conservative | Kellner Merger vs. Fidelity Advisor Diversified | Kellner Merger vs. Prudential Core Conservative |
| Allianzgi Diversified vs. Brookfield Business Corp | Allianzgi Diversified vs. Elysee Development Corp | Allianzgi Diversified vs. DWS Municipal Income | Allianzgi Diversified vs. Blackrock Munivest |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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