Correlation Between Allianzgi Global and Cm Commodity
Can any of the company-specific risk be diversified away by investing in both Allianzgi Global and Cm Commodity 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 Global and Cm Commodity into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Allianzgi Global Natural and Cm Modity Index, you can compare the effects of market volatilities on Allianzgi Global and Cm Commodity 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 Global with a short position of Cm Commodity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allianzgi Global and Cm Commodity.
Diversification Opportunities for Allianzgi Global and Cm Commodity
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Allianzgi and CMCYX is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Allianzgi Global Natural and Cm Modity Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cm Modity Index and Allianzgi Global 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 Global Natural are associated (or correlated) with Cm Commodity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cm Modity Index has no effect on the direction of Allianzgi Global i.e., Allianzgi Global and Cm Commodity go up and down completely randomly.
Pair Corralation between Allianzgi Global and Cm Commodity
If you would invest 1,065 in Allianzgi Global Natural on November 6, 2024 and sell it today you would earn a total of 17.00 from holding Allianzgi Global Natural or generate 1.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Allianzgi Global Natural vs. Cm Modity Index
Performance |
| Timeline |
| Allianzgi Global Natural |
| Cm Modity Index |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
Allianzgi Global and Cm Commodity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allianzgi Global and Cm Commodity
The main advantage of trading using opposite Allianzgi Global and Cm Commodity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allianzgi Global position performs unexpectedly, Cm Commodity 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 Cm Commodity will offset losses from the drop in Cm Commodity's long position.| Allianzgi Global vs. Allianzgi Nfj Dividend | Allianzgi Global vs. Allianzgi Nfj International | Allianzgi Global vs. Allianzgi Vertible Fund | Allianzgi Global vs. Allianzgi Technology Fund |
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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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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