Correlation Between Allianzgi Convertible and Franklin Louisiana
Can any of the company-specific risk be diversified away by investing in both Allianzgi Convertible and Franklin Louisiana 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 Franklin Louisiana 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 Franklin Louisiana Tax Free, you can compare the effects of market volatilities on Allianzgi Convertible and Franklin Louisiana 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 Franklin Louisiana. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allianzgi Convertible and Franklin Louisiana.
Diversification Opportunities for Allianzgi Convertible and Franklin Louisiana
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Allianzgi and FRANKLIN is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Allianzgi Convertible Income and Franklin Louisiana Tax Free in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Louisiana Tax 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 Franklin Louisiana. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Louisiana Tax has no effect on the direction of Allianzgi Convertible i.e., Allianzgi Convertible and Franklin Louisiana go up and down completely randomly.
Pair Corralation between Allianzgi Convertible and Franklin Louisiana
Assuming the 90 days horizon Allianzgi Convertible Income is expected to generate 3.27 times more return on investment than Franklin Louisiana. However, Allianzgi Convertible is 3.27 times more volatile than Franklin Louisiana Tax Free. It trades about 0.14 of its potential returns per unit of risk. Franklin Louisiana Tax Free is currently generating about 0.08 per unit of risk. If you would invest 340.00 in Allianzgi Convertible Income on September 1, 2024 and sell it today you would earn a total of 66.00 from holding Allianzgi Convertible Income or generate 19.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.47% |
| Values | Daily Returns |
Allianzgi Convertible Income vs. Franklin Louisiana Tax Free
Performance |
| Timeline |
| Allianzgi Convertible |
| Franklin Louisiana Tax |
Allianzgi Convertible and Franklin Louisiana Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allianzgi Convertible and Franklin Louisiana
The main advantage of trading using opposite Allianzgi Convertible and Franklin Louisiana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allianzgi Convertible position performs unexpectedly, Franklin Louisiana 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 Franklin Louisiana will offset losses from the drop in Franklin Louisiana's long position.| Allianzgi Convertible vs. Cutler Equity | Allianzgi Convertible vs. Calamos Global Equity | Allianzgi Convertible vs. Us Strategic Equity | Allianzgi Convertible vs. Scharf Fund Retail |
| Franklin Louisiana vs. Virtus Convertible | Franklin Louisiana vs. Putnam Convertible Incm Gwth | Franklin Louisiana vs. Allianzgi Convertible Income | Franklin Louisiana vs. Advent Claymore Convertible |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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