Correlation Between Allianzgi Convertible and Floating Rate
Can any of the company-specific risk be diversified away by investing in both Allianzgi Convertible and Floating Rate 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 Floating Rate 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 Floating Rate Fund, you can compare the effects of market volatilities on Allianzgi Convertible and Floating Rate 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 Floating Rate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allianzgi Convertible and Floating Rate.
Diversification Opportunities for Allianzgi Convertible and Floating Rate
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Allianzgi and Floating is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Allianzgi Convertible Income and Floating Rate Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Floating Rate 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 Floating Rate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Floating Rate has no effect on the direction of Allianzgi Convertible i.e., Allianzgi Convertible and Floating Rate go up and down completely randomly.
Pair Corralation between Allianzgi Convertible and Floating Rate
Assuming the 90 days horizon Allianzgi Convertible Income is expected to generate 4.45 times more return on investment than Floating Rate. However, Allianzgi Convertible is 4.45 times more volatile than Floating Rate Fund. It trades about 0.16 of its potential returns per unit of risk. Floating Rate Fund is currently generating about 0.26 per unit of risk. If you would invest 309.00 in Allianzgi Convertible Income on November 7, 2024 and sell it today you would earn a total of 45.00 from holding Allianzgi Convertible Income or generate 14.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Allianzgi Convertible Income vs. Floating Rate Fund
Performance |
| Timeline |
| Allianzgi Convertible |
| Floating Rate |
Allianzgi Convertible and Floating Rate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allianzgi Convertible and Floating Rate
The main advantage of trading using opposite Allianzgi Convertible and Floating Rate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allianzgi Convertible position performs unexpectedly, Floating Rate 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 Floating Rate will offset losses from the drop in Floating Rate's long position.| Allianzgi Convertible vs. Us Global Investors | Allianzgi Convertible vs. Ms Global Fixed | Allianzgi Convertible vs. Ab Global Bond | Allianzgi Convertible vs. Barings Global Floating |
| Floating Rate vs. Dunham Real Estate | Floating Rate vs. Tiaa Cref Real Estate | Floating Rate vs. Rreef Property Trust | Floating Rate vs. Vy Clarion Real |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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