Correlation Between Global Gold and Allianzgi Convertible
Can any of the company-specific risk be diversified away by investing in both Global Gold and Allianzgi Convertible 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 Global Gold and Allianzgi Convertible into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Gold Fund and Allianzgi Convertible Income, you can compare the effects of market volatilities on Global Gold and Allianzgi Convertible 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 Global Gold with a short position of Allianzgi Convertible. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Gold and Allianzgi Convertible.
Diversification Opportunities for Global Gold and Allianzgi Convertible
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Global and Allianzgi is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Global Gold Fund and Allianzgi Convertible Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allianzgi Convertible and Global Gold 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 Global Gold Fund are associated (or correlated) with Allianzgi Convertible. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allianzgi Convertible has no effect on the direction of Global Gold i.e., Global Gold and Allianzgi Convertible go up and down completely randomly.
Pair Corralation between Global Gold and Allianzgi Convertible
Assuming the 90 days horizon Global Gold Fund is expected to generate 2.58 times more return on investment than Allianzgi Convertible. However, Global Gold is 2.58 times more volatile than Allianzgi Convertible Income. It trades about 0.1 of its potential returns per unit of risk. Allianzgi Convertible Income is currently generating about 0.03 per unit of risk. If you would invest 1,566 in Global Gold Fund on March 25, 2025 and sell it today you would earn a total of 258.00 from holding Global Gold Fund or generate 16.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global Gold Fund vs. Allianzgi Convertible Income
Performance |
| Timeline |
| Global Gold Fund |
| Allianzgi Convertible |
Global Gold and Allianzgi Convertible Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Gold and Allianzgi Convertible
The main advantage of trading using opposite Global Gold and Allianzgi Convertible positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Gold position performs unexpectedly, Allianzgi Convertible 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 Allianzgi Convertible will offset losses from the drop in Allianzgi Convertible's long position.| Global Gold vs. Delaware Limited Term Diversified | Global Gold vs. Saat Servative Strategy | Global Gold vs. Massmutual Premier Diversified | Global Gold vs. Harbor Diversified International |
| Allianzgi Convertible vs. Doubleline Total Return | Allianzgi Convertible vs. Ab Bond Inflation | Allianzgi Convertible vs. Franklin Government Money | Allianzgi Convertible vs. Ab Bond Inflation |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |