Correlation Between Allianzgi Convertible and Stone Harbor
Can any of the company-specific risk be diversified away by investing in both Allianzgi Convertible and Stone Harbor 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 Stone Harbor 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 Stone Harbor Emerging, you can compare the effects of market volatilities on Allianzgi Convertible and Stone Harbor 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 Stone Harbor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allianzgi Convertible and Stone Harbor.
Diversification Opportunities for Allianzgi Convertible and Stone Harbor
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Allianzgi and Stone is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Allianzgi Convertible Income and Stone Harbor Emerging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stone Harbor Emerging 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 Stone Harbor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stone Harbor Emerging has no effect on the direction of Allianzgi Convertible i.e., Allianzgi Convertible and Stone Harbor go up and down completely randomly.
Pair Corralation between Allianzgi Convertible and Stone Harbor
Considering the 90-day investment horizon Allianzgi Convertible Income is expected to generate 0.83 times more return on investment than Stone Harbor. However, Allianzgi Convertible Income is 1.21 times less risky than Stone Harbor. It trades about 0.35 of its potential returns per unit of risk. Stone Harbor Emerging is currently generating about 0.05 per unit of risk. If you would invest 338.00 in Allianzgi Convertible Income on August 29, 2024 and sell it today you would earn a total of 30.00 from holding Allianzgi Convertible Income or generate 8.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Allianzgi Convertible Income vs. Stone Harbor Emerging
Performance |
| Timeline |
| Allianzgi Convertible |
| Stone Harbor Emerging |
Allianzgi Convertible and Stone Harbor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allianzgi Convertible and Stone Harbor
The main advantage of trading using opposite Allianzgi Convertible and Stone Harbor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allianzgi Convertible position performs unexpectedly, Stone Harbor 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 Stone Harbor will offset losses from the drop in Stone Harbor's long position.| Allianzgi Convertible vs. Munivest Fund | Allianzgi Convertible vs. MFS High Income | Allianzgi Convertible vs. Franklin Templeton Limited | Allianzgi Convertible vs. Clough Global Ef |
| Stone Harbor vs. Gabelli Global Small | Stone Harbor vs. MFS Investment Grade | Stone Harbor vs. Eaton Vance National | Stone Harbor vs. GAMCO Natural Resources |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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