Correlation Between Aig Government and American Century
Can any of the company-specific risk be diversified away by investing in both Aig Government and American Century 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 Aig Government and American Century into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aig Government Money and American Century Capital, you can compare the effects of market volatilities on Aig Government and American Century 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 Aig Government with a short position of American Century. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aig Government and American Century.
Diversification Opportunities for Aig Government and American Century
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Aig and American is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Aig Government Money and American Century Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Century Capital and Aig Government 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 Aig Government Money are associated (or correlated) with American Century. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Century Capital has no effect on the direction of Aig Government i.e., Aig Government and American Century go up and down completely randomly.
Pair Corralation between Aig Government and American Century
Assuming the 90 days horizon Aig Government Money is expected to generate 0.2 times more return on investment than American Century. However, Aig Government Money is 5.13 times less risky than American Century. It trades about 0.02 of its potential returns per unit of risk. American Century Capital is currently generating about -0.08 per unit of risk. If you would invest 1,001 in Aig Government Money on October 25, 2024 and sell it today you would earn a total of 2.00 from holding Aig Government Money or generate 0.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.33% |
| Values | Daily Returns |
Aig Government Money vs. American Century Capital
Performance |
| Timeline |
| Aig Government Money |
| American Century Capital |
Aig Government and American Century Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aig Government and American Century
The main advantage of trading using opposite Aig Government and American Century positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aig Government position performs unexpectedly, American Century 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 American Century will offset losses from the drop in American Century's long position.| Aig Government vs. Virtus Seix Government | Aig Government vs. Alpine Ultra Short | Aig Government vs. Old Westbury Municipal | Aig Government vs. Intermediate Term Tax Free Bond |
| American Century vs. Health Care Fund | American Century vs. Invesco Global Health | American Century vs. Prudential Health Sciences | American Century vs. Deutsche Health And |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |