Correlation Between Allianzgi Convertible and Macquariefirst
Can any of the company-specific risk be diversified away by investing in both Allianzgi Convertible and Macquariefirst 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 Macquariefirst 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 Macquariefirst Tr Global, you can compare the effects of market volatilities on Allianzgi Convertible and Macquariefirst 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 Macquariefirst. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allianzgi Convertible and Macquariefirst.
Diversification Opportunities for Allianzgi Convertible and Macquariefirst
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Allianzgi and Macquariefirst is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Allianzgi Convertible Income and Macquariefirst Tr Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Macquariefirst Tr Global 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 Macquariefirst. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Macquariefirst Tr Global has no effect on the direction of Allianzgi Convertible i.e., Allianzgi Convertible and Macquariefirst go up and down completely randomly.
Pair Corralation between Allianzgi Convertible and Macquariefirst
Considering the 90-day investment horizon Allianzgi Convertible Income is expected to generate 1.26 times more return on investment than Macquariefirst. However, Allianzgi Convertible is 1.26 times more volatile than Macquariefirst Tr Global. It trades about 0.07 of its potential returns per unit of risk. Macquariefirst Tr Global is currently generating about 0.07 per unit of risk. If you would invest 248.00 in Allianzgi Convertible Income on August 31, 2024 and sell it today you would earn a total of 85.00 from holding Allianzgi Convertible Income or generate 34.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 86.9% |
| Values | Daily Returns |
Allianzgi Convertible Income vs. Macquariefirst Tr Global
Performance |
| Timeline |
| Allianzgi Convertible |
| Macquariefirst Tr Global |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
Allianzgi Convertible and Macquariefirst Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allianzgi Convertible and Macquariefirst
The main advantage of trading using opposite Allianzgi Convertible and Macquariefirst positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allianzgi Convertible position performs unexpectedly, Macquariefirst 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 Macquariefirst will offset losses from the drop in Macquariefirst'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 |
| Macquariefirst vs. MFS High Yield | Macquariefirst vs. MFS Investment Grade | Macquariefirst vs. MFS Municipal Income | Macquariefirst vs. DTF Tax Free |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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