Correlation Between Aig Government and One Choice
Can any of the company-specific risk be diversified away by investing in both Aig Government and One Choice 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 One Choice 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 One Choice In, you can compare the effects of market volatilities on Aig Government and One Choice 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 One Choice. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aig Government and One Choice.
Diversification Opportunities for Aig Government and One Choice
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Aig and One is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Aig Government Money and One Choice In in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on One Choice In 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 One Choice. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of One Choice In has no effect on the direction of Aig Government i.e., Aig Government and One Choice go up and down completely randomly.
Pair Corralation between Aig Government and One Choice
Assuming the 90 days horizon Aig Government is expected to generate 1.96 times less return on investment than One Choice. But when comparing it to its historical volatility, Aig Government Money is 1.91 times less risky than One Choice. It trades about 0.12 of its potential returns per unit of risk. One Choice In is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 1,230 in One Choice In on September 3, 2024 and sell it today you would earn a total of 69.00 from holding One Choice In or generate 5.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aig Government Money vs. One Choice In
Performance |
| Timeline |
| Aig Government Money |
| One Choice In |
Aig Government and One Choice Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aig Government and One Choice
The main advantage of trading using opposite Aig Government and One Choice positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aig Government position performs unexpectedly, One Choice 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 One Choice will offset losses from the drop in One Choice's long position.| Aig Government vs. Nuveen Massachusetts Municipal | Aig Government vs. Nuveen Massachusetts Municipal | Aig Government vs. Mfs Massachusetts Municipal |
| One Choice vs. Rbc Funds Trust | One Choice vs. Aig Government Money | One Choice vs. First American Funds | One Choice vs. Ashmore Emerging Markets |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |