Correlation Between Aig Government and Ab Select
Can any of the company-specific risk be diversified away by investing in both Aig Government and Ab Select 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 Ab Select 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 Ab Select Longshort, you can compare the effects of market volatilities on Aig Government and Ab Select 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 Ab Select. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aig Government and Ab Select.
Diversification Opportunities for Aig Government and Ab Select
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aig and ASCLX is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Aig Government Money and Ab Select Longshort in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab Select Longshort 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 Ab Select. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab Select Longshort has no effect on the direction of Aig Government i.e., Aig Government and Ab Select go up and down completely randomly.
Pair Corralation between Aig Government and Ab Select
Assuming the 90 days horizon Aig Government Money is expected to generate 0.06 times more return on investment than Ab Select. However, Aig Government Money is 15.39 times less risky than Ab Select. It trades about 0.56 of its potential returns per unit of risk. Ab Select Longshort is currently generating about -0.2 per unit of risk. If you would invest 1,007 in Aig Government Money on September 12, 2024 and sell it today you would earn a total of 12.00 from holding Aig Government Money or generate 1.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aig Government Money vs. Ab Select Longshort
Performance |
| Timeline |
| Aig Government Money |
| Ab Select Longshort |
Aig Government and Ab Select Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aig Government and Ab Select
The main advantage of trading using opposite Aig Government and Ab Select positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aig Government position performs unexpectedly, Ab Select 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 Ab Select will offset losses from the drop in Ab Select's long position.| Aig Government vs. SCOR PK | Aig Government vs. Morningstar Unconstrained Allocation | Aig Government vs. Via Renewables | Aig Government vs. Bondbloxx ETF Trust |
| Ab Select vs. Diamond Hill Long Short | Ab Select vs. Pimco Rae Worldwide | Ab Select vs. SCOR PK | Ab Select vs. Morningstar Unconstrained Allocation |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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