Correlation Between Mydestination 2045 and Aig Government
Can any of the company-specific risk be diversified away by investing in both Mydestination 2045 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 Mydestination 2045 and Aig Government into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mydestination 2045 Fund and Aig Government Money, you can compare the effects of market volatilities on Mydestination 2045 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 Mydestination 2045 with a short position of Aig Government. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mydestination 2045 and Aig Government.
Diversification Opportunities for Mydestination 2045 and Aig Government
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mydestination and Aig is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Mydestination 2045 Fund 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 Mydestination 2045 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 Mydestination 2045 Fund 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 Mydestination 2045 i.e., Mydestination 2045 and Aig Government go up and down completely randomly.
Pair Corralation between Mydestination 2045 and Aig Government
Assuming the 90 days horizon Mydestination 2045 Fund is expected to generate 5.09 times more return on investment than Aig Government. However, Mydestination 2045 is 5.09 times more volatile than Aig Government Money. It trades about 0.14 of its potential returns per unit of risk. Aig Government Money is currently generating about 0.07 per unit of risk. If you would invest 1,170 in Mydestination 2045 Fund on October 24, 2024 and sell it today you would earn a total of 23.00 from holding Mydestination 2045 Fund or generate 1.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mydestination 2045 Fund vs. Aig Government Money
Performance |
| Timeline |
| Mydestination 2045 |
| Aig Government Money |
Mydestination 2045 and Aig Government Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mydestination 2045 and Aig Government
The main advantage of trading using opposite Mydestination 2045 and Aig Government positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mydestination 2045 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.| Mydestination 2045 vs. Aig Government Money | Mydestination 2045 vs. Bbh Trust | Mydestination 2045 vs. Lord Abbett Emerging | Mydestination 2045 vs. John Hancock Money |
| Aig Government vs. Angel Oak Ultrashort | Aig Government vs. Leader Short Term Bond | Aig Government vs. Prudential Short Duration | Aig Government vs. Rbc Short Duration |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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