Correlation Between Sit Mid and Aig Government
Can any of the company-specific risk be diversified away by investing in both Sit Mid 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 Sit Mid and Aig Government into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sit Mid Cap and Aig Government Money, you can compare the effects of market volatilities on Sit Mid 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 Sit Mid with a short position of Aig Government. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sit Mid and Aig Government.
Diversification Opportunities for Sit Mid and Aig Government
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sit and Aig is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Sit Mid Cap 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 Sit Mid 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 Sit Mid Cap 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 Sit Mid i.e., Sit Mid and Aig Government go up and down completely randomly.
Pair Corralation between Sit Mid and Aig Government
Assuming the 90 days horizon Sit Mid Cap is expected to generate 3.84 times more return on investment than Aig Government. However, Sit Mid is 3.84 times more volatile than Aig Government Money. It trades about 0.27 of its potential returns per unit of risk. Aig Government Money is currently generating about 0.16 per unit of risk. If you would invest 2,426 in Sit Mid Cap on September 4, 2024 and sell it today you would earn a total of 139.00 from holding Sit Mid Cap or generate 5.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Sit Mid Cap vs. Aig Government Money
Performance |
| Timeline |
| Sit Mid Cap |
| Aig Government Money |
Sit Mid and Aig Government Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sit Mid and Aig Government
The main advantage of trading using opposite Sit Mid and Aig Government positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sit Mid 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.| Sit Mid vs. Us Vector Equity | Sit Mid vs. Multimedia Portfolio Multimedia | Sit Mid vs. The Fixed Income | Sit Mid vs. Jpmorgan Equity Income |
| 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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