Correlation Between Allianzgi Equity and General American
Can any of the company-specific risk be diversified away by investing in both Allianzgi Equity and General American 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 General American 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 General American Investors, you can compare the effects of market volatilities on Allianzgi Equity and General American 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 General American. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allianzgi Equity and General American.
Diversification Opportunities for Allianzgi Equity and General American
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Allianzgi and General is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Allianzgi Equity Convertible and General American Investors in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on General American Inv 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 General American. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of General American Inv has no effect on the direction of Allianzgi Equity i.e., Allianzgi Equity and General American go up and down completely randomly.
Pair Corralation between Allianzgi Equity and General American
Considering the 90-day investment horizon Allianzgi Equity Convertible is expected to generate 1.0 times more return on investment than General American. However, Allianzgi Equity Convertible is 1.0 times less risky than General American. It trades about 0.29 of its potential returns per unit of risk. General American Investors is currently generating about 0.22 per unit of risk. If you would invest 2,314 in Allianzgi Equity Convertible on August 31, 2024 and sell it today you would earn a total of 118.00 from holding Allianzgi Equity Convertible or generate 5.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Allianzgi Equity Convertible vs. General American Investors
Performance |
| Timeline |
| Allianzgi Equity Con |
| General American Inv |
Allianzgi Equity and General American Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allianzgi Equity and General American
The main advantage of trading using opposite Allianzgi Equity and General American positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allianzgi Equity position performs unexpectedly, General American 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 General American will offset losses from the drop in General American's long position.| Allianzgi Equity vs. MFS Investment Grade | Allianzgi Equity vs. Eaton Vance Municipal | Allianzgi Equity vs. DTF Tax Free | Allianzgi Equity vs. HUMANA INC |
| General American vs. Blackrock Muniyield | General American vs. Allianzgi Equity Convertible | General American vs. MFS Investment Grade | General American vs. Eaton Vance National |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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