Correlation Between Allianzgi Convertible and CBH
Can any of the company-specific risk be diversified away by investing in both Allianzgi Convertible and CBH 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 CBH 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 CBH, you can compare the effects of market volatilities on Allianzgi Convertible and CBH 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 CBH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allianzgi Convertible and CBH.
Diversification Opportunities for Allianzgi Convertible and CBH
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Allianzgi and CBH is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Allianzgi Convertible Income and CBH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CBH 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 CBH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CBH has no effect on the direction of Allianzgi Convertible i.e., Allianzgi Convertible and CBH go up and down completely randomly.
Pair Corralation between Allianzgi Convertible and CBH
If you would invest 338.00 in Allianzgi Convertible Income on August 27, 2024 and sell it today you would earn a total of 28.00 from holding Allianzgi Convertible Income or generate 8.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Allianzgi Convertible Income vs. CBH
Performance |
| Timeline |
| Allianzgi Convertible |
| CBH |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Allianzgi Convertible and CBH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allianzgi Convertible and CBH
The main advantage of trading using opposite Allianzgi Convertible and CBH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allianzgi Convertible position performs unexpectedly, CBH 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 CBH will offset losses from the drop in CBH'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 |
| CBH vs. MFS Investment Grade | CBH vs. Invesco High Income | CBH vs. Eaton Vance National | CBH vs. Nuveen California Select |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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