Correlation Between Great Elm and Allianzgi Convertible
Can any of the company-specific risk be diversified away by investing in both Great Elm 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 Great Elm and Allianzgi Convertible into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Great Elm Group and Allianzgi Convertible Income, you can compare the effects of market volatilities on Great Elm 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 Great Elm with a short position of Allianzgi Convertible. Check out your portfolio center. Please also check ongoing floating volatility patterns of Great Elm and Allianzgi Convertible.
Diversification Opportunities for Great Elm and Allianzgi Convertible
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Great and Allianzgi is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Great Elm Group and Allianzgi Convertible Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allianzgi Convertible and Great Elm 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 Great Elm Group 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 Great Elm i.e., Great Elm and Allianzgi Convertible go up and down completely randomly.
Pair Corralation between Great Elm and Allianzgi Convertible
Considering the 90-day investment horizon Great Elm is expected to generate 33.48 times less return on investment than Allianzgi Convertible. In addition to that, Great Elm is 1.6 times more volatile than Allianzgi Convertible Income. It trades about 0.0 of its total potential returns per unit of risk. Allianzgi Convertible Income is currently generating about 0.09 per unit of volatility. If you would invest 255.00 in Allianzgi Convertible Income on November 9, 2024 and sell it today you would earn a total of 76.00 from holding Allianzgi Convertible Income or generate 29.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Great Elm Group vs. Allianzgi Convertible Income
Performance |
| Timeline |
| Great Elm Group |
| Allianzgi Convertible |
Great Elm and Allianzgi Convertible Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Great Elm and Allianzgi Convertible
The main advantage of trading using opposite Great Elm and Allianzgi Convertible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Great Elm 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.| Great Elm vs. Investcorp Credit Management | Great Elm vs. Monroe Capital Corp | Great Elm vs. Allianzgi Convertible Income | Great Elm vs. John Hancock Income |
| Allianzgi Convertible vs. Clough Global Allocation | Allianzgi Convertible vs. Nuveen Municipal Credit | Allianzgi Convertible vs. Putnam High Income | Allianzgi Convertible vs. Virtus Dividend Interest |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |