Correlation Between IShares Silver and Allianzgi Focused

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

By analyzing existing cross correlation between iShares Silver Trust and Allianzgi Focused Growth, you can compare the effects of market volatilities on IShares Silver and Allianzgi Focused 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 IShares Silver with a short position of Allianzgi Focused. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Silver and Allianzgi Focused.

Diversification Opportunities for IShares Silver and Allianzgi Focused

0.42

Correlation Coefficient

IShares Silver  Allianzgi Focused

Very weak diversification

The 3 months correlation between IShares and Allianzgi is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding iShares Silver Trust and Allianzgi Focused Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allianzgi Focused Growth and IShares Silver 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 iShares Silver Trust are associated (or correlated) with Allianzgi Focused. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allianzgi Focused Growth has no effect on the direction of IShares Silver i.e., IShares Silver and Allianzgi Focused go up and down completely randomly.

Pair Corralation between IShares Silver and Allianzgi Focused

Considering the 90-day investment horizon IShares Silver is expected to generate 1.35 times less return on investment than Allianzgi Focused. In addition to that, IShares Silver is 1.27 times more volatile than Allianzgi Focused Growth. It trades about 0.04 of its total potential returns per unit of risk. Allianzgi Focused Growth is currently generating about 0.07 per unit of volatility. If you would invest  4,337  in Allianzgi Focused Growth on February 26, 2024 and sell it today you would earn a total of  2,611  from holding Allianzgi Focused Growth or generate 60.2% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	99.8%
Values	Daily Returns

iShares Silver Trust  vs.  Allianzgi Focused Growth

iShares Silver Trust

Risk-Adjusted Performance

18 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in iShares Silver Trust are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile essential indicators, IShares Silver showed solid returns over the last few months and may actually be approaching a breakup point.

Allianzgi Focused Growth

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Allianzgi Focused Growth are ranked lower than 8 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Allianzgi Focused may actually be approaching a critical reversion point that can send shares even higher in June 2024.

Pair Trading with IShares Silver and Allianzgi Focused

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

The idea behind iShares Silver Trust and Allianzgi Focused Growth 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.