Correlation Between SCOR PK and Aig Government
Can any of the company-specific risk be diversified away by investing in both SCOR PK 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 SCOR PK and Aig Government into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SCOR PK and Aig Government Money, you can compare the effects of market volatilities on SCOR PK 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 SCOR PK with a short position of Aig Government. Check out your portfolio center. Please also check ongoing floating volatility patterns of SCOR PK and Aig Government.
Diversification Opportunities for SCOR PK and Aig Government
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SCOR and Aig is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SCOR PK 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 SCOR PK 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 SCOR PK 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 SCOR PK i.e., SCOR PK and Aig Government go up and down completely randomly.
Pair Corralation between SCOR PK and Aig Government
Assuming the 90 days horizon SCOR PK is expected to generate 15.43 times more return on investment than Aig Government. However, SCOR PK is 15.43 times more volatile than Aig Government Money. It trades about 0.0 of its potential returns per unit of risk. Aig Government Money is currently generating about 0.05 per unit of risk. If you would invest 288.00 in SCOR PK on September 12, 2024 and sell it today you would lose (29.00) from holding SCOR PK or give up 10.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.15% |
| Values | Daily Returns |
SCOR PK vs. Aig Government Money
Performance |
| Timeline |
| SCOR PK |
| Aig Government Money |
SCOR PK and Aig Government Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SCOR PK and Aig Government
The main advantage of trading using opposite SCOR PK and Aig Government positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SCOR PK 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.The idea behind SCOR PK and Aig Government Money pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Aig Government vs. SCOR PK | Aig Government vs. Morningstar Unconstrained Allocation | Aig Government vs. Via Renewables | Aig Government vs. Bondbloxx ETF Trust |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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