Correlation Between Gabelli Money and Aig Government
Can any of the company-specific risk be diversified away by investing in both Gabelli Money 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 Gabelli Money and Aig Government into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Gabelli Money and Aig Government Money, you can compare the effects of market volatilities on Gabelli Money 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 Gabelli Money with a short position of Aig Government. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gabelli Money and Aig Government.
Diversification Opportunities for Gabelli Money and Aig Government
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gabelli and Aig is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding The Gabelli Money 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 Gabelli Money 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 The Gabelli Money 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 Gabelli Money i.e., Gabelli Money and Aig Government go up and down completely randomly.
Pair Corralation between Gabelli Money and Aig Government
Assuming the 90 days horizon The Gabelli Money is expected to generate 2.06 times more return on investment than Aig Government. However, Gabelli Money is 2.06 times more volatile than Aig Government Money. It trades about 0.05 of its potential returns per unit of risk. Aig Government Money is currently generating about 0.09 per unit of risk. If you would invest 95.00 in The Gabelli Money on September 14, 2024 and sell it today you would earn a total of 5.00 from holding The Gabelli Money or generate 5.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 97.81% |
| Values | Daily Returns |
The Gabelli Money vs. Aig Government Money
Performance |
| Timeline |
| Gabelli Money |
| Aig Government Money |
Gabelli Money and Aig Government Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gabelli Money and Aig Government
The main advantage of trading using opposite Gabelli Money and Aig Government positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gabelli Money 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.| Gabelli Money vs. Artisan High Income | Gabelli Money vs. Touchstone Premium Yield | Gabelli Money vs. Alliancebernstein Bond | Gabelli Money vs. California Bond Fund |
| 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |