Correlation Between Allianzgi Nfj and Cref Money
Can any of the company-specific risk be diversified away by investing in both Allianzgi Nfj and Cref Money 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 Cref Money 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 Cref Money Market, you can compare the effects of market volatilities on Allianzgi Nfj and Cref Money 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 Cref Money. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allianzgi Nfj and Cref Money.
Diversification Opportunities for Allianzgi Nfj and Cref Money
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Allianzgi and Cref is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Allianzgi Nfj Small Cap and Cref Money Market in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cref Money Market 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 Cref Money. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cref Money Market has no effect on the direction of Allianzgi Nfj i.e., Allianzgi Nfj and Cref Money go up and down completely randomly.
Pair Corralation between Allianzgi Nfj and Cref Money
Assuming the 90 days horizon Allianzgi Nfj is expected to generate 1.88 times less return on investment than Cref Money. In addition to that, Allianzgi Nfj is 45.35 times more volatile than Cref Money Market. It trades about 0.01 of its total potential returns per unit of risk. Cref Money Market is currently generating about 0.93 per unit of volatility. If you would invest 2,966 in Cref Money Market on September 15, 2024 and sell it today you would earn a total of 10.00 from holding Cref Money Market or generate 0.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Allianzgi Nfj Small Cap vs. Cref Money Market
Performance |
| Timeline |
| Allianzgi Nfj Small |
| Cref Money Market |
Allianzgi Nfj and Cref Money Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allianzgi Nfj and Cref Money
The main advantage of trading using opposite Allianzgi Nfj and Cref Money positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allianzgi Nfj position performs unexpectedly, Cref Money 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 Cref Money will offset losses from the drop in Cref Money's long position.| Allianzgi Nfj vs. Cref Money Market | Allianzgi Nfj vs. General Money Market | Allianzgi Nfj vs. Chestnut Street Exchange | Allianzgi Nfj vs. Franklin Government Money |
| Cref Money vs. Advent Claymore Convertible | Cref Money vs. Putnam Convertible Incm Gwth | Cref Money vs. Lord Abbett Convertible | Cref Money vs. Gabelli Convertible And |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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