Correlation Between Allianzgi Convertible and Energy Fund
Can any of the company-specific risk be diversified away by investing in both Allianzgi Convertible and Energy 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 Energy 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 Energy Fund Class, you can compare the effects of market volatilities on Allianzgi Convertible and Energy 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 Energy Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allianzgi Convertible and Energy Fund.
Diversification Opportunities for Allianzgi Convertible and Energy Fund
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between AllianzGI and Energy is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Allianzgi Convertible Income and Energy Fund Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Energy Fund Class 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 Energy Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Energy Fund Class has no effect on the direction of Allianzgi Convertible i.e., Allianzgi Convertible and Energy Fund go up and down completely randomly.
Pair Corralation between Allianzgi Convertible and Energy Fund
Assuming the 90 days horizon Allianzgi Convertible Income is expected to generate 0.58 times more return on investment than Energy Fund. However, Allianzgi Convertible Income is 1.72 times less risky than Energy Fund. It trades about 0.05 of its potential returns per unit of risk. Energy Fund Class is currently generating about 0.01 per unit of risk. If you would invest 328.00 in Allianzgi Convertible Income on November 1, 2024 and sell it today you would earn a total of 64.00 from holding Allianzgi Convertible Income or generate 19.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Allianzgi Convertible Income vs. Energy Fund Class
Performance |
| Timeline |
| Allianzgi Convertible |
| Energy Fund Class |
Allianzgi Convertible and Energy Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allianzgi Convertible and Energy Fund
The main advantage of trading using opposite Allianzgi Convertible and Energy Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allianzgi Convertible position performs unexpectedly, Energy 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 Energy Fund will offset losses from the drop in Energy Fund's long position.| Allianzgi Convertible vs. Financial Industries Fund | Allianzgi Convertible vs. Gabelli Global Financial | Allianzgi Convertible vs. Davis Financial Fund | Allianzgi Convertible vs. First Trust Specialty |
| Energy Fund vs. L Abbett Growth | Energy Fund vs. T Rowe Price | Energy Fund vs. Stringer Growth Fund | Energy Fund vs. Riverparknext Century Growth |
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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