Correlation Between Nebraska Municipal and Allianzgi Nfj
Can any of the company-specific risk be diversified away by investing in both Nebraska Municipal and Allianzgi Nfj 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 Nebraska Municipal and Allianzgi Nfj into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nebraska Municipal Fund and Allianzgi Nfj Small Cap, you can compare the effects of market volatilities on Nebraska Municipal and Allianzgi Nfj 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 Nebraska Municipal with a short position of Allianzgi Nfj. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nebraska Municipal and Allianzgi Nfj.
Diversification Opportunities for Nebraska Municipal and Allianzgi Nfj
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Nebraska and Allianzgi is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Nebraska Municipal Fund and Allianzgi Nfj Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allianzgi Nfj Small and Nebraska Municipal 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 Nebraska Municipal Fund are associated (or correlated) with Allianzgi Nfj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allianzgi Nfj Small has no effect on the direction of Nebraska Municipal i.e., Nebraska Municipal and Allianzgi Nfj go up and down completely randomly.
Pair Corralation between Nebraska Municipal and Allianzgi Nfj
Assuming the 90 days horizon Nebraska Municipal is expected to generate 2.17 times less return on investment than Allianzgi Nfj. But when comparing it to its historical volatility, Nebraska Municipal Fund is 6.4 times less risky than Allianzgi Nfj. It trades about 0.04 of its potential returns per unit of risk. Allianzgi Nfj Small Cap is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,297 in Allianzgi Nfj Small Cap on September 3, 2024 and sell it today you would earn a total of 63.00 from holding Allianzgi Nfj Small Cap or generate 4.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nebraska Municipal Fund vs. Allianzgi Nfj Small Cap
Performance |
| Timeline |
| Nebraska Municipal |
| Allianzgi Nfj Small |
Nebraska Municipal and Allianzgi Nfj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nebraska Municipal and Allianzgi Nfj
The main advantage of trading using opposite Nebraska Municipal and Allianzgi Nfj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nebraska Municipal position performs unexpectedly, Allianzgi Nfj 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 Allianzgi Nfj will offset losses from the drop in Allianzgi Nfj's long position.| Nebraska Municipal vs. Touchstone Ultra Short | Nebraska Municipal vs. Aqr Long Short Equity | Nebraska Municipal vs. Astor Longshort Fund | Nebraska Municipal vs. Quantitative Longshort Equity |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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