Correlation Between Allianzgi Health and American Beacon
Can any of the company-specific risk be diversified away by investing in both Allianzgi Health and American Beacon 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 Health and American Beacon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Allianzgi Health Sciences and American Beacon Shapiro, you can compare the effects of market volatilities on Allianzgi Health and American Beacon 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 Health with a short position of American Beacon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allianzgi Health and American Beacon.
Diversification Opportunities for Allianzgi Health and American Beacon
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Allianzgi and American is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Allianzgi Health Sciences and American Beacon Shapiro in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Beacon Shapiro and Allianzgi Health 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 Health Sciences are associated (or correlated) with American Beacon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Beacon Shapiro has no effect on the direction of Allianzgi Health i.e., Allianzgi Health and American Beacon go up and down completely randomly.
Pair Corralation between Allianzgi Health and American Beacon
Assuming the 90 days horizon Allianzgi Health Sciences is expected to generate 1.22 times more return on investment than American Beacon. However, Allianzgi Health is 1.22 times more volatile than American Beacon Shapiro. It trades about 0.31 of its potential returns per unit of risk. American Beacon Shapiro is currently generating about 0.22 per unit of risk. If you would invest 2,766 in Allianzgi Health Sciences on November 3, 2024 and sell it today you would earn a total of 153.00 from holding Allianzgi Health Sciences or generate 5.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Allianzgi Health Sciences vs. American Beacon Shapiro
Performance |
| Timeline |
| Allianzgi Health Sciences |
| American Beacon Shapiro |
Allianzgi Health and American Beacon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allianzgi Health and American Beacon
The main advantage of trading using opposite Allianzgi Health and American Beacon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allianzgi Health position performs unexpectedly, American Beacon 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 American Beacon will offset losses from the drop in American Beacon's long position.| Allianzgi Health vs. Tfa Alphagen Growth | Allianzgi Health vs. Versatile Bond Portfolio | Allianzgi Health vs. Rbb Fund | Allianzgi Health vs. Federated Emerging Market |
| American Beacon vs. Gmo International Equity | American Beacon vs. Gmo Global Equity | American Beacon vs. Ultra Short Fixed Income | American Beacon vs. Old Westbury Fixed |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |