Correlation Between Fidelity Flex and Aig Government
Can any of the company-specific risk be diversified away by investing in both Fidelity Flex 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 Fidelity Flex and Aig Government into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Flex Freedom and Aig Government Money, you can compare the effects of market volatilities on Fidelity Flex 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 Fidelity Flex with a short position of Aig Government. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Flex and Aig Government.
Diversification Opportunities for Fidelity Flex and Aig Government
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Fidelity and Aig is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Flex Freedom 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 Fidelity Flex 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 Fidelity Flex Freedom 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 Fidelity Flex i.e., Fidelity Flex and Aig Government go up and down completely randomly.
Pair Corralation between Fidelity Flex and Aig Government
Assuming the 90 days horizon Fidelity Flex Freedom is expected to under-perform the Aig Government. In addition to that, Fidelity Flex is 4.12 times more volatile than Aig Government Money. It trades about -0.11 of its total potential returns per unit of risk. Aig Government Money is currently generating about -0.16 per unit of volatility. If you would invest 1,006 in Aig Government Money on January 11, 2025 and sell it today you would lose (21.00) from holding Aig Government Money or give up 2.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity Flex Freedom vs. Aig Government Money
Performance |
| Timeline |
| Fidelity Flex Freedom |
| Aig Government Money |
Fidelity Flex and Aig Government Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Flex and Aig Government
The main advantage of trading using opposite Fidelity Flex and Aig Government positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Flex 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.| Fidelity Flex vs. Fidelity Advisor Diversified | Fidelity Flex vs. Aqr Diversified Arbitrage | Fidelity Flex vs. Massmutual Select Diversified | Fidelity Flex vs. Federated Hermes Conservative |
| Aig Government vs. Ab Global Risk | Aig Government vs. Vanguard Inflation Protected Securities | Aig Government vs. Rational Dividend Capture | Aig Government vs. Versatile Bond Portfolio |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Commodity Directory Find actively traded commodities issued by global exchanges |