Correlation Between Columbia Amt and Aig Government
Can any of the company-specific risk be diversified away by investing in both Columbia Amt 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 Columbia Amt and Aig Government into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Columbia Amt Free Oregon and Aig Government Money, you can compare the effects of market volatilities on Columbia Amt 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 Columbia Amt with a short position of Aig Government. Check out your portfolio center. Please also check ongoing floating volatility patterns of Columbia Amt and Aig Government.
Diversification Opportunities for Columbia Amt and Aig Government
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Columbia and Aig is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Columbia Amt Free Oregon 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 Columbia Amt 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 Columbia Amt Free Oregon 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 Columbia Amt i.e., Columbia Amt and Aig Government go up and down completely randomly.
Pair Corralation between Columbia Amt and Aig Government
Assuming the 90 days horizon Columbia Amt is expected to generate 1.61 times less return on investment than Aig Government. But when comparing it to its historical volatility, Columbia Amt Free Oregon is 1.39 times less risky than Aig Government. It trades about 0.48 of its potential returns per unit of risk. Aig Government Money is currently generating about 0.56 of returns per unit of risk over similar time horizon. If you would invest 1,006 in Aig Government Money on September 13, 2024 and sell it today you would earn a total of 12.00 from holding Aig Government Money or generate 1.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Columbia Amt Free Oregon vs. Aig Government Money
Performance |
| Timeline |
| Columbia Amt Free |
| Aig Government Money |
Columbia Amt and Aig Government Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Columbia Amt and Aig Government
The main advantage of trading using opposite Columbia Amt and Aig Government positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Columbia Amt 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.| Columbia Amt vs. Columbia Porate Income | Columbia Amt vs. Columbia Ultra Short | Columbia Amt vs. Columbia Treasury Index | Columbia Amt vs. Multi Manager Directional Alternative |
| Aig Government vs. Simt Multi Asset Accumulation | Aig Government vs. Saat Market Growth | Aig Government vs. Simt Real Return | Aig Government vs. Simt Small Cap |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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