Correlation Between Aig Government and Asg Managed
Can any of the company-specific risk be diversified away by investing in both Aig Government and Asg Managed 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 Asg Managed 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 Asg Managed Futures, you can compare the effects of market volatilities on Aig Government and Asg Managed 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 Asg Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aig Government and Asg Managed.
Diversification Opportunities for Aig Government and Asg Managed
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Aig and Asg is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Aig Government Money and Asg Managed Futures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asg Managed Futures 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 Asg Managed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asg Managed Futures has no effect on the direction of Aig Government i.e., Aig Government and Asg Managed go up and down completely randomly.
Pair Corralation between Aig Government and Asg Managed
Assuming the 90 days horizon Aig Government Money is expected to generate 0.35 times more return on investment than Asg Managed. However, Aig Government Money is 2.82 times less risky than Asg Managed. It trades about 0.01 of its potential returns per unit of risk. Asg Managed Futures is currently generating about -0.02 per unit of risk. If you would invest 1,013 in Aig Government Money on September 3, 2024 and sell it today you would earn a total of 1.00 from holding Aig Government Money or generate 0.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aig Government Money vs. Asg Managed Futures
Performance |
| Timeline |
| Aig Government Money |
| Asg Managed Futures |
Aig Government and Asg Managed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aig Government and Asg Managed
The main advantage of trading using opposite Aig Government and Asg Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aig Government position performs unexpectedly, Asg Managed 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 Asg Managed will offset losses from the drop in Asg Managed's long position.| Aig Government vs. Vanguard Massachusetts Tax Exempt | Aig Government vs. Nuveen Massachusetts Municipal | Aig Government vs. Nuveen Massachusetts Municipal | Aig Government vs. Mfs Massachusetts Municipal |
| Asg Managed vs. Us Government Securities | Asg Managed vs. Aig Government Money | Asg Managed vs. Dreyfus Government Cash | Asg Managed vs. Ab Government Exchange |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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