Correlation Between Allianzgi Convertible and Aberdeen Income
Can any of the company-specific risk be diversified away by investing in both Allianzgi Convertible and Aberdeen Income 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 Allianzgi Convertible and Aberdeen Income into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Allianzgi Convertible Income and Aberdeen Income Credit, you can compare the effects of market volatilities on Allianzgi Convertible and Aberdeen Income 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 Allianzgi Convertible with a short position of Aberdeen Income. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allianzgi Convertible and Aberdeen Income.
Diversification Opportunities for Allianzgi Convertible and Aberdeen Income
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Allianzgi and Aberdeen is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Allianzgi Convertible Income and Aberdeen Income Credit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aberdeen Income Credit and Allianzgi Convertible 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 Allianzgi Convertible Income are associated (or correlated) with Aberdeen Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aberdeen Income Credit has no effect on the direction of Allianzgi Convertible i.e., Allianzgi Convertible and Aberdeen Income go up and down completely randomly.
Pair Corralation between Allianzgi Convertible and Aberdeen Income
Considering the 90-day investment horizon Allianzgi Convertible Income is expected to generate 1.68 times more return on investment than Aberdeen Income. However, Allianzgi Convertible is 1.68 times more volatile than Aberdeen Income Credit. It trades about 0.17 of its potential returns per unit of risk. Aberdeen Income Credit is currently generating about 0.15 per unit of risk. If you would invest 330.00 in Allianzgi Convertible Income on August 28, 2024 and sell it today you would earn a total of 36.00 from holding Allianzgi Convertible Income or generate 10.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Allianzgi Convertible Income vs. Aberdeen Income Credit
Performance |
| Timeline |
| Allianzgi Convertible |
| Aberdeen Income Credit |
Allianzgi Convertible and Aberdeen Income Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allianzgi Convertible and Aberdeen Income
The main advantage of trading using opposite Allianzgi Convertible and Aberdeen Income positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allianzgi Convertible position performs unexpectedly, Aberdeen Income 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 Aberdeen Income will offset losses from the drop in Aberdeen Income's long position.| Allianzgi Convertible vs. Calamos Global Dynamic | Allianzgi Convertible vs. Calamos Strategic Total | Allianzgi Convertible vs. Calamos LongShort Equity | Allianzgi Convertible vs. DTF Tax Free |
| Aberdeen Income vs. Pimco Dynamic Income | Aberdeen Income vs. Pimco Corporate Income | Aberdeen Income vs. Cornerstone Strategic Value | Aberdeen Income vs. Cornerstone Strategic Return |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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