Correlation Between Allianzgi Convertible and Mainstay Epoch
Can any of the company-specific risk be diversified away by investing in both Allianzgi Convertible and Mainstay Epoch 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 Convertible and Mainstay Epoch into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Allianzgi Convertible Income and Mainstay Epoch Global, you can compare the effects of market volatilities on Allianzgi Convertible and Mainstay Epoch 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 Convertible with a short position of Mainstay Epoch. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allianzgi Convertible and Mainstay Epoch.
Diversification Opportunities for Allianzgi Convertible and Mainstay Epoch
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Allianzgi and Mainstay is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Allianzgi Convertible Income and Mainstay Epoch Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Epoch Global and Allianzgi Convertible 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 Convertible Income are associated (or correlated) with Mainstay Epoch. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Epoch Global has no effect on the direction of Allianzgi Convertible i.e., Allianzgi Convertible and Mainstay Epoch go up and down completely randomly.
Pair Corralation between Allianzgi Convertible and Mainstay Epoch
Assuming the 90 days horizon Allianzgi Convertible Income is expected to generate 1.05 times more return on investment than Mainstay Epoch. However, Allianzgi Convertible is 1.05 times more volatile than Mainstay Epoch Global. It trades about 0.08 of its potential returns per unit of risk. Mainstay Epoch Global is currently generating about 0.06 per unit of risk. If you would invest 310.00 in Allianzgi Convertible Income on September 14, 2024 and sell it today you would earn a total of 95.00 from holding Allianzgi Convertible Income or generate 30.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Allianzgi Convertible Income vs. Mainstay Epoch Global
Performance |
| Timeline |
| Allianzgi Convertible |
| Mainstay Epoch Global |
Allianzgi Convertible and Mainstay Epoch Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allianzgi Convertible and Mainstay Epoch
The main advantage of trading using opposite Allianzgi Convertible and Mainstay Epoch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allianzgi Convertible position performs unexpectedly, Mainstay Epoch 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 Mainstay Epoch will offset losses from the drop in Mainstay Epoch's long position.| Allianzgi Convertible vs. Western Asset Diversified | Allianzgi Convertible vs. Oaktree Diversifiedome | Allianzgi Convertible vs. Pimco Diversified Income | Allianzgi Convertible vs. Davenport Small Cap |
| Mainstay Epoch vs. Allianzgi Convertible Income | Mainstay Epoch vs. Calamos Dynamic Convertible | Mainstay Epoch vs. Advent Claymore Convertible | Mainstay Epoch vs. Putnam Convertible Incm Gwth |
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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