Correlation Between Mairs Power and Allianzgi Convertible
Can any of the company-specific risk be diversified away by investing in both Mairs Power 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 Mairs Power and Allianzgi Convertible into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mairs Power Growth and Allianzgi Convertible Income, you can compare the effects of market volatilities on Mairs Power 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 Mairs Power with a short position of Allianzgi Convertible. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mairs Power and Allianzgi Convertible.
Diversification Opportunities for Mairs Power and Allianzgi Convertible
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mairs and Allianzgi is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Mairs Power Growth and Allianzgi Convertible Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allianzgi Convertible and Mairs Power 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 Mairs Power Growth 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 Mairs Power i.e., Mairs Power and Allianzgi Convertible go up and down completely randomly.
Pair Corralation between Mairs Power and Allianzgi Convertible
Assuming the 90 days horizon Mairs Power Growth is expected to generate 1.03 times more return on investment than Allianzgi Convertible. However, Mairs Power is 1.03 times more volatile than Allianzgi Convertible Income. It trades about -0.18 of its potential returns per unit of risk. Allianzgi Convertible Income is currently generating about -0.26 per unit of risk. If you would invest 17,495 in Mairs Power Growth on October 17, 2024 and sell it today you would lose (608.00) from holding Mairs Power Growth or give up 3.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mairs Power Growth vs. Allianzgi Convertible Income
Performance |
| Timeline |
| Mairs Power Growth |
| Allianzgi Convertible |
Mairs Power and Allianzgi Convertible Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mairs Power and Allianzgi Convertible
The main advantage of trading using opposite Mairs Power and Allianzgi Convertible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mairs Power 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.| Mairs Power vs. Meridian Trarian Fund | Mairs Power vs. Mairs Power Balanced | Mairs Power vs. Clipper Fund Inc | Mairs Power vs. Meridian Growth Fund |
| Allianzgi Convertible vs. Tfa Alphagen Growth | Allianzgi Convertible vs. Mid Cap Growth | Allianzgi Convertible vs. Artisan Small Cap | Allianzgi Convertible vs. Needham Aggressive Growth |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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