Correlation Between Allianzgi Convertible and Cref Money
Can any of the company-specific risk be diversified away by investing in both Allianzgi Convertible and Cref Money 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 Cref Money 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 Cref Money Market, you can compare the effects of market volatilities on Allianzgi Convertible and Cref Money 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 Cref Money. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allianzgi Convertible and Cref Money.
Diversification Opportunities for Allianzgi Convertible and Cref Money
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Allianzgi and Cref is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Allianzgi Convertible Income and Cref Money Market in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cref Money Market 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 Cref Money. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cref Money Market has no effect on the direction of Allianzgi Convertible i.e., Allianzgi Convertible and Cref Money go up and down completely randomly.
Pair Corralation between Allianzgi Convertible and Cref Money
Assuming the 90 days horizon Allianzgi Convertible Income is expected to generate 685.76 times more return on investment than Cref Money. However, Allianzgi Convertible is 685.76 times more volatile than Cref Money Market. It trades about 0.05 of its potential returns per unit of risk. Cref Money Market is currently generating about 0.97 per unit of risk. If you would invest 315.00 in Allianzgi Convertible Income on December 26, 2024 and sell it today you would earn a total of 1,152 from holding Allianzgi Convertible Income or generate 365.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.79% |
| Values | Daily Returns |
Allianzgi Convertible Income vs. Cref Money Market
Performance |
| Timeline |
| Allianzgi Convertible |
| Cref Money Market |
Allianzgi Convertible and Cref Money Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allianzgi Convertible and Cref Money
The main advantage of trading using opposite Allianzgi Convertible and Cref Money positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allianzgi Convertible position performs unexpectedly, Cref Money 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 Cref Money will offset losses from the drop in Cref Money's long position.| Allianzgi Convertible vs. Franklin Adjustable Government | Allianzgi Convertible vs. Rbc Funds Trust | Allianzgi Convertible vs. Us Government Securities | Allianzgi Convertible vs. Short Term Government Fund |
| Cref Money vs. Morningstar Defensive Bond | Cref Money vs. Intermediate Term Bond Fund | Cref Money vs. Praxis Impact Bond | Cref Money vs. Calvert Bond Portfolio |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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