Correlation Between Glg Intl and Allianzgi Technology
Can any of the company-specific risk be diversified away by investing in both Glg Intl and Allianzgi Technology 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 Glg Intl and Allianzgi Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Glg Intl Small and Allianzgi Technology Fund, you can compare the effects of market volatilities on Glg Intl and Allianzgi Technology 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 Glg Intl with a short position of Allianzgi Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glg Intl and Allianzgi Technology.
Diversification Opportunities for Glg Intl and Allianzgi Technology
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Glg and Allianzgi is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Glg Intl Small and Allianzgi Technology Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allianzgi Technology and Glg Intl 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 Glg Intl Small are associated (or correlated) with Allianzgi Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allianzgi Technology has no effect on the direction of Glg Intl i.e., Glg Intl and Allianzgi Technology go up and down completely randomly.
Pair Corralation between Glg Intl and Allianzgi Technology
Assuming the 90 days horizon Glg Intl Small is expected to generate 0.66 times more return on investment than Allianzgi Technology. However, Glg Intl Small is 1.51 times less risky than Allianzgi Technology. It trades about -0.09 of its potential returns per unit of risk. Allianzgi Technology Fund is currently generating about -0.11 per unit of risk. If you would invest 8,625 in Glg Intl Small on October 18, 2024 and sell it today you would lose (180.00) from holding Glg Intl Small or give up 2.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Glg Intl Small vs. Allianzgi Technology Fund
Performance |
| Timeline |
| Glg Intl Small |
| Allianzgi Technology |
Glg Intl and Allianzgi Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Glg Intl and Allianzgi Technology
The main advantage of trading using opposite Glg Intl and Allianzgi Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glg Intl position performs unexpectedly, Allianzgi Technology 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 Technology will offset losses from the drop in Allianzgi Technology's long position.| Glg Intl vs. Franklin Emerging Market | Glg Intl vs. Dws Emerging Markets | Glg Intl vs. Saat Market Growth | Glg Intl vs. Aqr Sustainable Long Short |
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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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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