Correlation Between Allianzgi Convertible and Bond Fund
Can any of the company-specific risk be diversified away by investing in both Allianzgi Convertible and Bond Fund 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 Bond Fund 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 Bond Fund Of, you can compare the effects of market volatilities on Allianzgi Convertible and Bond Fund 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 Bond Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allianzgi Convertible and Bond Fund.
Diversification Opportunities for Allianzgi Convertible and Bond Fund
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Allianzgi and Bond is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Allianzgi Convertible Income and Bond Fund Of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bond Fund 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 Bond Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bond Fund has no effect on the direction of Allianzgi Convertible i.e., Allianzgi Convertible and Bond Fund go up and down completely randomly.
Pair Corralation between Allianzgi Convertible and Bond Fund
Assuming the 90 days horizon Allianzgi Convertible Income is expected to generate 1.83 times more return on investment than Bond Fund. However, Allianzgi Convertible is 1.83 times more volatile than Bond Fund Of. It trades about 0.07 of its potential returns per unit of risk. Bond Fund Of is currently generating about 0.04 per unit of risk. If you would invest 339.00 in Allianzgi Convertible Income on September 12, 2024 and sell it today you would earn a total of 67.00 from holding Allianzgi Convertible Income or generate 19.76% 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. Bond Fund Of
Performance |
| Timeline |
| Allianzgi Convertible |
| Bond Fund |
Allianzgi Convertible and Bond Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allianzgi Convertible and Bond Fund
The main advantage of trading using opposite Allianzgi Convertible and Bond Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allianzgi Convertible position performs unexpectedly, Bond Fund 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 Bond Fund will offset losses from the drop in Bond Fund's long position.The idea behind Allianzgi Convertible Income and Bond Fund Of pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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