Correlation Between Blackrock Global and Aig Government
Can any of the company-specific risk be diversified away by investing in both Blackrock Global 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 Blackrock Global and Aig Government into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blackrock Global Long and Aig Government Money, you can compare the effects of market volatilities on Blackrock Global 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 Blackrock Global with a short position of Aig Government. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blackrock Global and Aig Government.
Diversification Opportunities for Blackrock Global and Aig Government
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Blackrock and Aig is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Blackrock Global Long 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 Blackrock Global 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 Blackrock Global Long 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 Blackrock Global i.e., Blackrock Global and Aig Government go up and down completely randomly.
Pair Corralation between Blackrock Global and Aig Government
Assuming the 90 days horizon Blackrock Global Long is expected to generate 2.65 times more return on investment than Aig Government. However, Blackrock Global is 2.65 times more volatile than Aig Government Money. It trades about 0.08 of its potential returns per unit of risk. Aig Government Money is currently generating about 0.12 per unit of risk. If you would invest 1,316 in Blackrock Global Long on September 3, 2024 and sell it today you would earn a total of 65.00 from holding Blackrock Global Long or generate 4.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blackrock Global Long vs. Aig Government Money
Performance |
| Timeline |
| Blackrock Global Long |
| Aig Government Money |
Blackrock Global and Aig Government Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blackrock Global and Aig Government
The main advantage of trading using opposite Blackrock Global and Aig Government positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blackrock Global 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.| Blackrock Global vs. Victory Cemp Market | Blackrock Global vs. Aqr Equity Market | Blackrock Global vs. Blackrock Gbl Lng | Blackrock Global vs. Pimco Fundamental Advantage |
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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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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