Correlation Between Allianzgi Focused and Federated Global
Can any of the company-specific risk be diversified away by investing in both Allianzgi Focused and Federated Global 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 Focused and Federated Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Allianzgi Focused Growth and Federated Global Allocation, you can compare the effects of market volatilities on Allianzgi Focused and Federated Global 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 Focused with a short position of Federated Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allianzgi Focused and Federated Global.
Diversification Opportunities for Allianzgi Focused and Federated Global
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Allianzgi and FEDERATED is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Allianzgi Focused Growth and Federated Global Allocation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated Global All and Allianzgi Focused 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 Focused Growth are associated (or correlated) with Federated Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federated Global All has no effect on the direction of Allianzgi Focused i.e., Allianzgi Focused and Federated Global go up and down completely randomly.
Pair Corralation between Allianzgi Focused and Federated Global
Assuming the 90 days horizon Allianzgi Focused Growth is expected to generate 2.22 times more return on investment than Federated Global. However, Allianzgi Focused is 2.22 times more volatile than Federated Global Allocation. It trades about 0.05 of its potential returns per unit of risk. Federated Global Allocation is currently generating about 0.07 per unit of risk. If you would invest 3,247 in Allianzgi Focused Growth on October 20, 2024 and sell it today you would earn a total of 34.00 from holding Allianzgi Focused Growth or generate 1.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Allianzgi Focused Growth vs. Federated Global Allocation
Performance |
| Timeline |
| Allianzgi Focused Growth |
| Federated Global All |
Allianzgi Focused and Federated Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allianzgi Focused and Federated Global
The main advantage of trading using opposite Allianzgi Focused and Federated Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allianzgi Focused position performs unexpectedly, Federated Global 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 Federated Global will offset losses from the drop in Federated Global's long position.| Allianzgi Focused vs. Federated Global Allocation | Allianzgi Focused vs. L Abbett Fundamental | Allianzgi Focused vs. Alternative Asset Allocation | Allianzgi Focused vs. Arrow Managed Futures |
| Federated Global vs. Federated Max Cap Index | Federated Global vs. Federated Kaufmann Fund | Federated Global vs. Federated Strategic Income | Federated Global vs. Federated Bond Fund |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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