Correlation Between Virtus Allianzgi and Allianzgi Equity

Can any of the company-specific risk be diversified away by investing in both Virtus Allianzgi and Allianzgi 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 Virtus Allianzgi and Allianzgi Equity into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Virtus Allianzgi Artificial and Allianzgi Equity Convertible, you can compare the effects of market volatilities on Virtus Allianzgi and Allianzgi 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 Virtus Allianzgi with a short position of Allianzgi Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Virtus Allianzgi and Allianzgi Equity.

Diversification Opportunities for Virtus Allianzgi and Allianzgi Equity

0.94

Correlation Coefficient

Virtus Allianzgi  Allianzgi Equity

Almost no diversification

The 3 months correlation between Virtus and Allianzgi is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Virtus Allianzgi Artificial and Allianzgi Equity Convertible in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allianzgi Equity Con and Virtus Allianzgi 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 Virtus Allianzgi Artificial are associated (or correlated) with Allianzgi Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allianzgi Equity Con has no effect on the direction of Virtus Allianzgi i.e., Virtus Allianzgi and Allianzgi Equity go up and down completely randomly.

Pair Corralation between Virtus Allianzgi and Allianzgi Equity

Considering the 90-day investment horizon Virtus Allianzgi Artificial is expected to generate 1.45 times more return on investment than Allianzgi Equity. However, Virtus Allianzgi is 1.45 times more volatile than Allianzgi Equity Convertible. It trades about 0.27 of its potential returns per unit of risk. Allianzgi Equity Convertible is currently generating about 0.24 per unit of risk. If you would invest  2,113  in Virtus Allianzgi Artificial on May 5, 2025 and sell it today you would earn a total of  346.00  from holding Virtus Allianzgi Artificial or generate 16.37% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

Virtus Allianzgi Artificial  vs.  Allianzgi Equity Convertible

Virtus Allianzgi Art

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Virtus Allianzgi Artificial are ranked lower than 20 (%) of all funds and portfolios of funds over the last 90 days. In spite of very weak forward indicators, Virtus Allianzgi displayed solid returns over the last few months and may actually be approaching a breakup point.

Allianzgi Equity Con

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Allianzgi Equity Convertible are ranked lower than 18 (%) of all funds and portfolios of funds over the last 90 days. In spite of rather abnormal forward indicators, Allianzgi Equity may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Virtus Allianzgi and Allianzgi Equity

The main advantage of trading using opposite Virtus Allianzgi and Allianzgi Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Virtus Allianzgi position performs unexpectedly, Allianzgi 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 Allianzgi Equity will offset losses from the drop in Allianzgi Equity's long position.

The idea behind Virtus Allianzgi Artificial and Allianzgi Equity Convertible pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.