Correlation Between Allianzgi Health and Aig Government
Can any of the company-specific risk be diversified away by investing in both Allianzgi Health 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 Allianzgi Health and Aig Government into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Allianzgi Health Sciences and Aig Government Money, you can compare the effects of market volatilities on Allianzgi Health 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 Allianzgi Health with a short position of Aig Government. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allianzgi Health and Aig Government.
Diversification Opportunities for Allianzgi Health and Aig Government
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Allianzgi and Aig is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Allianzgi Health Sciences 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 Allianzgi Health 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 Allianzgi Health Sciences 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 Allianzgi Health i.e., Allianzgi Health and Aig Government go up and down completely randomly.
Pair Corralation between Allianzgi Health and Aig Government
Assuming the 90 days horizon Allianzgi Health Sciences is expected to under-perform the Aig Government. In addition to that, Allianzgi Health is 3.2 times more volatile than Aig Government Money. It trades about -0.19 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 1,008 in Aig Government Money on September 23, 2024 and sell it today you would lose (8.00) from holding Aig Government Money or give up 0.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Allianzgi Health Sciences vs. Aig Government Money
Performance |
| Timeline |
| Allianzgi Health Sciences |
| Aig Government Money |
Allianzgi Health and Aig Government Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allianzgi Health and Aig Government
The main advantage of trading using opposite Allianzgi Health and Aig Government positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allianzgi Health 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.| Allianzgi Health vs. Iaadx | Allianzgi Health vs. Abr 7525 Volatility | Allianzgi Health vs. Volumetric Fund Volumetric | Allianzgi Health vs. Red Oak Technology |
| 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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