Correlation Between Aquagold International and Aig Government
Can any of the company-specific risk be diversified away by investing in both Aquagold International and Aig Government 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 Aquagold International and Aig Government into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aquagold International and Aig Government Money, you can compare the effects of market volatilities on Aquagold International and Aig Government 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 Aquagold International with a short position of Aig Government. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aquagold International and Aig Government.
Diversification Opportunities for Aquagold International and Aig Government
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aquagold and Aig is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Aquagold International and Aig Government Money in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aig Government Money and Aquagold International 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 Aquagold International are associated (or correlated) with Aig Government. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aig Government Money has no effect on the direction of Aquagold International i.e., Aquagold International and Aig Government go up and down completely randomly.
Pair Corralation between Aquagold International and Aig Government
Given the investment horizon of 90 days Aquagold International is expected to under-perform the Aig Government. In addition to that, Aquagold International is 24.31 times more volatile than Aig Government Money. It trades about -0.02 of its total potential returns per unit of risk. Aig Government Money is currently generating about 0.04 per unit of volatility. If you would invest 979.00 in Aig Government Money on August 28, 2024 and sell it today you would earn a total of 29.00 from holding Aig Government Money or generate 2.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aquagold International vs. Aig Government Money
Performance |
| Timeline |
| Aquagold International |
| Aig Government Money |
Aquagold International and Aig Government Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aquagold International and Aig Government
The main advantage of trading using opposite Aquagold International and Aig Government positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aquagold International position performs unexpectedly, Aig Government 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 Aig Government will offset losses from the drop in Aig Government's long position.| Aquagold International vs. PepsiCo | Aquagold International vs. Coca Cola Consolidated | Aquagold International vs. Monster Beverage Corp | Aquagold International vs. Celsius Holdings |
| Aig Government vs. Simt Multi Asset Accumulation | Aig Government vs. Simt Small Cap | Aig Government vs. Tax Free Conservative Income | Aig Government vs. Tax Free Conservative |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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