Correlation Between Allianzgi Convertible and Amer Beacon
Can any of the company-specific risk be diversified away by investing in both Allianzgi Convertible and Amer Beacon 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 Amer Beacon 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 Amer Beacon Garcia, you can compare the effects of market volatilities on Allianzgi Convertible and Amer Beacon 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 Amer Beacon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allianzgi Convertible and Amer Beacon.
Diversification Opportunities for Allianzgi Convertible and Amer Beacon
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Allianzgi and Amer is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Allianzgi Convertible Income and Amer Beacon Garcia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amer Beacon Garcia 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 Amer Beacon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amer Beacon Garcia has no effect on the direction of Allianzgi Convertible i.e., Allianzgi Convertible and Amer Beacon go up and down completely randomly.
Pair Corralation between Allianzgi Convertible and Amer Beacon
Assuming the 90 days horizon Allianzgi Convertible Income is expected to under-perform the Amer Beacon. In addition to that, Allianzgi Convertible is 2.02 times more volatile than Amer Beacon Garcia. It trades about -0.09 of its total potential returns per unit of risk. Amer Beacon Garcia is currently generating about -0.05 per unit of volatility. If you would invest 843.00 in Amer Beacon Garcia on October 23, 2024 and sell it today you would lose (7.00) from holding Amer Beacon Garcia or give up 0.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Allianzgi Convertible Income vs. Amer Beacon Garcia
Performance |
| Timeline |
| Allianzgi Convertible |
| Amer Beacon Garcia |
Allianzgi Convertible and Amer Beacon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allianzgi Convertible and Amer Beacon
The main advantage of trading using opposite Allianzgi Convertible and Amer Beacon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allianzgi Convertible position performs unexpectedly, Amer Beacon 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 Amer Beacon will offset losses from the drop in Amer Beacon's long position.| Allianzgi Convertible vs. T Rowe Price | Allianzgi Convertible vs. Virtus Seix Government | Allianzgi Convertible vs. Inverse Government Long | Allianzgi Convertible vs. Nuveen Strategic Municipal |
| Amer Beacon vs. Putnam Convertible Securities | Amer Beacon vs. Calamos Dynamic Convertible | Amer Beacon vs. Fidelity Sai Convertible | Amer Beacon vs. Allianzgi Convertible Income |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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