Correlation Between Allianzgi Nfj and European Equity
Can any of the company-specific risk be diversified away by investing in both Allianzgi Nfj and European Equity 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 Nfj and European Equity into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Allianzgi Nfj International and European Equity Closed, you can compare the effects of market volatilities on Allianzgi Nfj and European Equity 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 Nfj with a short position of European Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allianzgi Nfj and European Equity.
Diversification Opportunities for Allianzgi Nfj and European Equity
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Allianzgi and European is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Allianzgi Nfj International and European Equity Closed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on European Equity Closed and Allianzgi Nfj 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 Nfj International are associated (or correlated) with European Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of European Equity Closed has no effect on the direction of Allianzgi Nfj i.e., Allianzgi Nfj and European Equity go up and down completely randomly.
Pair Corralation between Allianzgi Nfj and European Equity
Assuming the 90 days horizon Allianzgi Nfj International is expected to generate 1.05 times more return on investment than European Equity. However, Allianzgi Nfj is 1.05 times more volatile than European Equity Closed. It trades about 0.15 of its potential returns per unit of risk. European Equity Closed is currently generating about 0.04 per unit of risk. If you would invest 2,281 in Allianzgi Nfj International on August 11, 2025 and sell it today you would earn a total of 188.00 from holding Allianzgi Nfj International or generate 8.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Allianzgi Nfj International vs. European Equity Closed
Performance |
| Timeline |
| Allianzgi Nfj Intern |
| European Equity Closed |
Allianzgi Nfj and European Equity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allianzgi Nfj and European Equity
The main advantage of trading using opposite Allianzgi Nfj and European Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allianzgi Nfj position performs unexpectedly, European Equity 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 European Equity will offset losses from the drop in European Equity's long position.| Allianzgi Nfj vs. Royce Pennsylvania Mutual | Allianzgi Nfj vs. Emerging Markets Fund | Allianzgi Nfj vs. Schwab Fundamental Small | Allianzgi Nfj vs. Transamerica Growth I |
| European Equity vs. John Hancock Premium | European Equity vs. Guidemark Large Cap | European Equity vs. Rmb Mendon Financial | European Equity vs. Ultranasdaq 100 Profund Ultranasdaq 100 |
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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