Correlation Between California Bond and Allianzgi Global
Can any of the company-specific risk be diversified away by investing in both California Bond and Allianzgi Global 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 California Bond and Allianzgi Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between California Bond Fund and Allianzgi Global Allocation, you can compare the effects of market volatilities on California Bond and Allianzgi Global 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 California Bond with a short position of Allianzgi Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of California Bond and Allianzgi Global.
Diversification Opportunities for California Bond and Allianzgi Global
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between California and Allianzgi is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding California Bond Fund and Allianzgi Global Allocation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allianzgi Global All and California Bond 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 California Bond Fund are associated (or correlated) with Allianzgi Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allianzgi Global All has no effect on the direction of California Bond i.e., California Bond and Allianzgi Global go up and down completely randomly.
Pair Corralation between California Bond and Allianzgi Global
Assuming the 90 days horizon California Bond is expected to generate 3.29 times less return on investment than Allianzgi Global. But when comparing it to its historical volatility, California Bond Fund is 1.53 times less risky than Allianzgi Global. It trades about 0.06 of its potential returns per unit of risk. Allianzgi Global Allocation is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 1,027 in Allianzgi Global Allocation on September 2, 2024 and sell it today you would earn a total of 33.00 from holding Allianzgi Global Allocation or generate 3.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
California Bond Fund vs. Allianzgi Global Allocation
Performance |
| Timeline |
| California Bond |
| Allianzgi Global All |
California Bond and Allianzgi Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with California Bond and Allianzgi Global
The main advantage of trading using opposite California Bond and Allianzgi Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if California Bond position performs unexpectedly, Allianzgi Global 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 Global will offset losses from the drop in Allianzgi Global's long position.| California Bond vs. Tiaa Cref Lifestyle Moderate | California Bond vs. Fidelity Managed Retirement | California Bond vs. Transamerica Cleartrack Retirement | California Bond vs. Dimensional Retirement Income |
| Allianzgi Global vs. Allianzgi Nfj International | Allianzgi Global vs. Allianzgi Nfj Dividend | Allianzgi Global vs. Allianzgi Nfj Small Cap | Allianzgi Global vs. Allianzgi Short Duration |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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