Correlation Between Aig Government and Midcap Growth
Can any of the company-specific risk be diversified away by investing in both Aig Government and Midcap Growth 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 Midcap Growth 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 The Midcap Growth, you can compare the effects of market volatilities on Aig Government and Midcap Growth 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 Midcap Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aig Government and Midcap Growth.
Diversification Opportunities for Aig Government and Midcap Growth
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aig and Midcap is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Aig Government Money and The Midcap Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Midcap Growth 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 Midcap Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Midcap Growth has no effect on the direction of Aig Government i.e., Aig Government and Midcap Growth go up and down completely randomly.
Pair Corralation between Aig Government and Midcap Growth
Assuming the 90 days horizon Aig Government Money is expected to generate 0.05 times more return on investment than Midcap Growth. However, Aig Government Money is 21.32 times less risky than Midcap Growth. It trades about 0.49 of its potential returns per unit of risk. The Midcap Growth is currently generating about -0.19 per unit of risk. If you would invest 1,006 in Aig Government Money on September 13, 2024 and sell it today you would earn a total of 11.00 from holding Aig Government Money or generate 1.09% 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. The Midcap Growth
Performance |
| Timeline |
| Aig Government Money |
| Midcap Growth |
Aig Government and Midcap Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aig Government and Midcap Growth
The main advantage of trading using opposite Aig Government and Midcap Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aig Government position performs unexpectedly, Midcap Growth 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 Midcap Growth will offset losses from the drop in Midcap Growth's long position.| Aig Government vs. Simt Multi Asset Accumulation | Aig Government vs. Saat Market Growth | Aig Government vs. Simt Real Return | Aig Government vs. Simt Small Cap |
| Midcap Growth vs. T Rowe Price | Midcap Growth vs. Aam Select Income | Midcap Growth vs. Rbc Microcap Value | Midcap Growth vs. Western Asset Municipal |
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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