Correlation Between Allianzgi Nfj and American Mutual
Can any of the company-specific risk be diversified away by investing in both Allianzgi Nfj and American Mutual 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 American Mutual into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Allianzgi Nfj Dividend and American Mutual Fund, you can compare the effects of market volatilities on Allianzgi Nfj and American Mutual 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 American Mutual. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allianzgi Nfj and American Mutual.
Diversification Opportunities for Allianzgi Nfj and American Mutual
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Allianzgi and American is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Allianzgi Nfj Dividend and American Mutual Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Mutual 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 Dividend are associated (or correlated) with American Mutual. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Mutual has no effect on the direction of Allianzgi Nfj i.e., Allianzgi Nfj and American Mutual go up and down completely randomly.
Pair Corralation between Allianzgi Nfj and American Mutual
Assuming the 90 days horizon Allianzgi Nfj Dividend is expected to generate 1.52 times more return on investment than American Mutual. However, Allianzgi Nfj is 1.52 times more volatile than American Mutual Fund. It trades about -0.04 of its potential returns per unit of risk. American Mutual Fund is currently generating about -0.13 per unit of risk. If you would invest 1,027 in Allianzgi Nfj Dividend on January 26, 2024 and sell it today you would lose (10.00) from holding Allianzgi Nfj Dividend or give up 0.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Allianzgi Nfj Dividend vs. American Mutual Fund
Performance |
| Timeline |
| Allianzgi Nfj Dividend |
| American Mutual |
Allianzgi Nfj and American Mutual Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allianzgi Nfj and American Mutual
The main advantage of trading using opposite Allianzgi Nfj and American Mutual positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allianzgi Nfj position performs unexpectedly, American Mutual 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 American Mutual will offset losses from the drop in American Mutual's long position.| Allianzgi Nfj vs. Edgewood Growth Fund | Allianzgi Nfj vs. Hartford Schroders Emerging | Allianzgi Nfj vs. HUMANA INC | Allianzgi Nfj vs. Aquagold International |
| American Mutual vs. Loomis Sayles Growth | American Mutual vs. Diamond Hill Large | American Mutual vs. Champlain Small Pany | American Mutual vs. HUMANA INC |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |