Correlation Between Allianzgi Health and State Farm
Can any of the company-specific risk be diversified away by investing in both Allianzgi Health and State Farm 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 State Farm 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 State Farm Balanced, you can compare the effects of market volatilities on Allianzgi Health and State Farm 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 State Farm. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allianzgi Health and State Farm.
Diversification Opportunities for Allianzgi Health and State Farm
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Allianzgi and State is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Allianzgi Health Sciences and State Farm Balanced in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on State Farm Balanced 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 State Farm. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of State Farm Balanced has no effect on the direction of Allianzgi Health i.e., Allianzgi Health and State Farm go up and down completely randomly.
Pair Corralation between Allianzgi Health and State Farm
Assuming the 90 days horizon Allianzgi Health Sciences is expected to under-perform the State Farm. But the mutual fund apears to be less risky and, when comparing its historical volatility, Allianzgi Health Sciences is 1.13 times less risky than State Farm. The mutual fund trades about 0.0 of its potential returns per unit of risk. The State Farm Balanced is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 9,036 in State Farm Balanced on November 3, 2024 and sell it today you would lose (39.00) from holding State Farm Balanced or give up 0.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Allianzgi Health Sciences vs. State Farm Balanced
Performance |
| Timeline |
| Allianzgi Health Sciences |
| State Farm Balanced |
Allianzgi Health and State Farm Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allianzgi Health and State Farm
The main advantage of trading using opposite Allianzgi Health and State Farm positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allianzgi Health position performs unexpectedly, State Farm 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 State Farm will offset losses from the drop in State Farm's long position.| Allianzgi Health vs. Angel Oak Financial | Allianzgi Health vs. John Hancock Money | Allianzgi Health vs. Gabelli Global Financial | Allianzgi Health vs. Blackstone Secured Lending |
| State Farm vs. Jpmorgan Ultra Short Municipal | State Farm vs. Pace Municipal Fixed | State Farm vs. Nuveen Strategic Municipal | State Farm vs. Gamco Global Telecommunications |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |