Correlation Between City National and Allianzgi Health
Can any of the company-specific risk be diversified away by investing in both City National and Allianzgi Health 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 City National and Allianzgi Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between City National Rochdale and Allianzgi Health Sciences, you can compare the effects of market volatilities on City National and Allianzgi Health 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 City National with a short position of Allianzgi Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of City National and Allianzgi Health.
Diversification Opportunities for City National and Allianzgi Health
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between City and Allianzgi is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding City National Rochdale and Allianzgi Health Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allianzgi Health Sciences and City National 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 City National Rochdale are associated (or correlated) with Allianzgi Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allianzgi Health Sciences has no effect on the direction of City National i.e., City National and Allianzgi Health go up and down completely randomly.
Pair Corralation between City National and Allianzgi Health
Assuming the 90 days horizon City National Rochdale is expected to generate 0.16 times more return on investment than Allianzgi Health. However, City National Rochdale is 6.17 times less risky than Allianzgi Health. It trades about 0.26 of its potential returns per unit of risk. Allianzgi Health Sciences is currently generating about 0.02 per unit of risk. If you would invest 1,762 in City National Rochdale on September 12, 2024 and sell it today you would earn a total of 221.00 from holding City National Rochdale or generate 12.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
City National Rochdale vs. Allianzgi Health Sciences
Performance |
| Timeline |
| City National Rochdale |
| Allianzgi Health Sciences |
City National and Allianzgi Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with City National and Allianzgi Health
The main advantage of trading using opposite City National and Allianzgi Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if City National position performs unexpectedly, Allianzgi Health 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 Allianzgi Health will offset losses from the drop in Allianzgi Health's long position.| City National vs. Allianzgi Diversified Income | City National vs. Blackrock Conservative Prprdptfinstttnl | City National vs. Lord Abbett Diversified | City National vs. Wealthbuilder Conservative Allocation |
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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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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