Correlation Between Allianzgi Focused and Energy Services
Can any of the company-specific risk be diversified away by investing in both Allianzgi Focused and Energy Services 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 Energy Services 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 Energy Services Fund, you can compare the effects of market volatilities on Allianzgi Focused and Energy Services 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 Energy Services. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allianzgi Focused and Energy Services.
Diversification Opportunities for Allianzgi Focused and Energy Services
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Allianzgi and Energy is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Allianzgi Focused Growth and Energy Services Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Energy Services 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 Energy Services. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Energy Services has no effect on the direction of Allianzgi Focused i.e., Allianzgi Focused and Energy Services go up and down completely randomly.
Pair Corralation between Allianzgi Focused and Energy Services
Assuming the 90 days horizon Allianzgi Focused Growth is expected to generate 0.65 times more return on investment than Energy Services. However, Allianzgi Focused Growth is 1.55 times less risky than Energy Services. It trades about 0.1 of its potential returns per unit of risk. Energy Services Fund is currently generating about -0.03 per unit of risk. If you would invest 3,058 in Allianzgi Focused Growth on September 3, 2024 and sell it today you would earn a total of 590.00 from holding Allianzgi Focused Growth or generate 19.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Allianzgi Focused Growth vs. Energy Services Fund
Performance |
| Timeline |
| Allianzgi Focused Growth |
| Energy Services |
Allianzgi Focused and Energy Services Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allianzgi Focused and Energy Services
The main advantage of trading using opposite Allianzgi Focused and Energy Services positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allianzgi Focused position performs unexpectedly, Energy Services 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 Energy Services will offset losses from the drop in Energy Services' long position.| Allianzgi Focused vs. Templeton Emerging Markets | Allianzgi Focused vs. Shelton Emerging Markets | Allianzgi Focused vs. Mondrian Emerging Markets | Allianzgi Focused vs. Ep Emerging Markets |
| Energy Services vs. Energy Fund Investor | Energy Services vs. Basic Materials Fund | Energy Services vs. Electronics Fund Investor | Energy Services vs. Health Care 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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