Correlation Between Allianzgi Equity and CBH
Can any of the company-specific risk be diversified away by investing in both Allianzgi Equity 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 Equity and CBH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Allianzgi Equity Convertible and CBH, you can compare the effects of market volatilities on Allianzgi Equity 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 Equity with a short position of CBH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allianzgi Equity and CBH.
Diversification Opportunities for Allianzgi Equity and CBH
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Allianzgi and CBH is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Allianzgi Equity Convertible and CBH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CBH and Allianzgi Equity 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 Equity Convertible 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 Equity i.e., Allianzgi Equity and CBH go up and down completely randomly.
Pair Corralation between Allianzgi Equity and CBH
Considering the 90-day investment horizon Allianzgi Equity is expected to generate 2.87 times less return on investment than CBH. But when comparing it to its historical volatility, Allianzgi Equity Convertible is 5.05 times less risky than CBH. It trades about 0.1 of its potential returns per unit of risk. CBH is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 772.00 in CBH on August 24, 2024 and sell it today you would earn a total of 985.00 from holding CBH or generate 127.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 88.31% |
| Values | Daily Returns |
Allianzgi Equity Convertible vs. CBH
Performance |
| Timeline |
| Allianzgi Equity Con |
| CBH |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Strong
Allianzgi Equity and CBH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allianzgi Equity and CBH
The main advantage of trading using opposite Allianzgi Equity and CBH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allianzgi Equity 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 Equity vs. MFS Investment Grade | Allianzgi Equity vs. Eaton Vance National | Allianzgi Equity vs. Blackrock Muniyield Quality | Allianzgi Equity vs. Munivest Fund |
| 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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