Correlation Between Allianzgi Nfj and Chase Growth
Can any of the company-specific risk be diversified away by investing in both Allianzgi Nfj and Chase Growth 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 Nfj and Chase Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Allianzgi Nfj Small Cap and Chase Growth Fund, you can compare the effects of market volatilities on Allianzgi Nfj and Chase Growth 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 Nfj with a short position of Chase Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allianzgi Nfj and Chase Growth.
Diversification Opportunities for Allianzgi Nfj and Chase Growth
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Allianzgi and Chase is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Allianzgi Nfj Small Cap and Chase Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chase Growth and Allianzgi Nfj 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 Nfj Small Cap are associated (or correlated) with Chase Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chase Growth has no effect on the direction of Allianzgi Nfj i.e., Allianzgi Nfj and Chase Growth go up and down completely randomly.
Pair Corralation between Allianzgi Nfj and Chase Growth
Assuming the 90 days horizon Allianzgi Nfj Small Cap is expected to generate 0.21 times more return on investment than Chase Growth. However, Allianzgi Nfj Small Cap is 4.67 times less risky than Chase Growth. It trades about -0.05 of its potential returns per unit of risk. Chase Growth Fund is currently generating about -0.21 per unit of risk. If you would invest 1,755 in Allianzgi Nfj Small Cap on September 12, 2024 and sell it today you would lose (17.00) from holding Allianzgi Nfj Small Cap or give up 0.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Allianzgi Nfj Small Cap vs. Chase Growth Fund
Performance |
| Timeline |
| Allianzgi Nfj Small |
| Chase Growth |
Allianzgi Nfj and Chase Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allianzgi Nfj and Chase Growth
The main advantage of trading using opposite Allianzgi Nfj and Chase Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allianzgi Nfj position performs unexpectedly, Chase Growth 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 Chase Growth will offset losses from the drop in Chase Growth's long position.| Allianzgi Nfj vs. Franklin Mutual Global | Allianzgi Nfj vs. Jhancock Global Equity | Allianzgi Nfj vs. Ab Global Risk | Allianzgi Nfj vs. Commonwealth Global Fund |
| Chase Growth vs. The Chesapeake Growth | Chase Growth vs. Aston Montag Caldwell | Chase Growth vs. The Jensen Portfolio | Chase Growth vs. Cambiar Opportunity 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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