Correlation Between Allianzgi Convertible and Great Elm
Can any of the company-specific risk be diversified away by investing in both Allianzgi Convertible and Great Elm 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 Great Elm 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 Great Elm Group, you can compare the effects of market volatilities on Allianzgi Convertible and Great Elm 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 Great Elm. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allianzgi Convertible and Great Elm.
Diversification Opportunities for Allianzgi Convertible and Great Elm
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Allianzgi and Great is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Allianzgi Convertible Income and Great Elm Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Great Elm Group 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 Great Elm. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Great Elm Group has no effect on the direction of Allianzgi Convertible i.e., Allianzgi Convertible and Great Elm go up and down completely randomly.
Pair Corralation between Allianzgi Convertible and Great Elm
Considering the 90-day investment horizon Allianzgi Convertible Income is expected to generate 0.6 times more return on investment than Great Elm. However, Allianzgi Convertible Income is 1.68 times less risky than Great Elm. It trades about 0.05 of its potential returns per unit of risk. Great Elm Group is currently generating about 0.01 per unit of risk. If you would invest 241.00 in Allianzgi Convertible Income on August 24, 2024 and sell it today you would earn a total of 85.00 from holding Allianzgi Convertible Income or generate 35.27% 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. Great Elm Group
Performance |
| Timeline |
| Allianzgi Convertible |
| Great Elm Group |
Allianzgi Convertible and Great Elm Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allianzgi Convertible and Great Elm
The main advantage of trading using opposite Allianzgi Convertible and Great Elm positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allianzgi Convertible position performs unexpectedly, Great Elm 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 Great Elm will offset losses from the drop in Great Elm's long position.| Allianzgi Convertible vs. Clough Global Allocation | Allianzgi Convertible vs. Nuveen Municipal Credit | Allianzgi Convertible vs. Putnam High Income | Allianzgi Convertible vs. Virtus Dividend Interest |
| Great Elm vs. Investcorp Credit Management | Great Elm vs. Monroe Capital Corp | Great Elm vs. Allianzgi Convertible Income | Great Elm vs. John Hancock Income |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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