Correlation Between Allianzgi Convertible and Federated Global
Can any of the company-specific risk be diversified away by investing in both Allianzgi Convertible and Federated 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 Allianzgi Convertible and Federated Global 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 Federated Global Total, you can compare the effects of market volatilities on Allianzgi Convertible and Federated 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 Allianzgi Convertible with a short position of Federated Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allianzgi Convertible and Federated Global.
Diversification Opportunities for Allianzgi Convertible and Federated Global
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Allianzgi and Federated is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Allianzgi Convertible Income and Federated Global Total in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated Global Total 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 Federated Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federated Global Total has no effect on the direction of Allianzgi Convertible i.e., Allianzgi Convertible and Federated Global go up and down completely randomly.
Pair Corralation between Allianzgi Convertible and Federated Global
Assuming the 90 days horizon Allianzgi Convertible Income is expected to generate 1.47 times more return on investment than Federated Global. However, Allianzgi Convertible is 1.47 times more volatile than Federated Global Total. It trades about 0.47 of its potential returns per unit of risk. Federated Global Total is currently generating about 0.01 per unit of risk. If you would invest 378.00 in Allianzgi Convertible Income on August 30, 2024 and sell it today you would earn a total of 27.00 from holding Allianzgi Convertible Income or generate 7.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Allianzgi Convertible Income vs. Federated Global Total
Performance |
| Timeline |
| Allianzgi Convertible |
| Federated Global Total |
Allianzgi Convertible and Federated Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allianzgi Convertible and Federated Global
The main advantage of trading using opposite Allianzgi Convertible and Federated Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allianzgi Convertible position performs unexpectedly, Federated 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 Federated Global will offset losses from the drop in Federated Global's long position.| Allianzgi Convertible vs. Vanguard Total Stock | Allianzgi Convertible vs. Vanguard 500 Index | Allianzgi Convertible vs. Vanguard Total Stock | Allianzgi Convertible vs. Vanguard Total Stock |
| Federated Global vs. Us Government Securities | Federated Global vs. Virtus Seix Government | Federated Global vs. Federated Government Ultrashort | Federated Global vs. Fidelity Series Government |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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