Correlation Between Aig Government and Alger Global
Can any of the company-specific risk be diversified away by investing in both Aig Government and Alger Global 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 Alger Global 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 Alger Global Growth, you can compare the effects of market volatilities on Aig Government and Alger Global 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 Alger Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aig Government and Alger Global.
Diversification Opportunities for Aig Government and Alger Global
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Aig and Alger is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Aig Government Money and Alger Global Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alger Global 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 Alger Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alger Global Growth has no effect on the direction of Aig Government i.e., Aig Government and Alger Global go up and down completely randomly.
Pair Corralation between Aig Government and Alger Global
Assuming the 90 days horizon Aig Government is expected to generate 7.4 times less return on investment than Alger Global. But when comparing it to its historical volatility, Aig Government Money is 6.15 times less risky than Alger Global. It trades about 0.02 of its potential returns per unit of risk. Alger Global Growth is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 2,208 in Alger Global Growth on November 1, 2024 and sell it today you would earn a total of 281.00 from holding Alger Global Growth or generate 12.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Aig Government Money vs. Alger Global Growth
Performance |
| Timeline |
| Aig Government Money |
| Alger Global Growth |
Aig Government and Alger Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aig Government and Alger Global
The main advantage of trading using opposite Aig Government and Alger Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aig Government position performs unexpectedly, Alger Global 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 Alger Global will offset losses from the drop in Alger Global's long position.| Aig Government vs. Advent Claymore Convertible | Aig Government vs. Allianzgi Convertible Income | Aig Government vs. Columbia Convertible Securities | Aig Government vs. Allianzgi Convertible Income |
| Alger Global vs. T Rowe Price | Alger Global vs. Credit Suisse Floating | Alger Global vs. Dgi Investment Trust | Alger Global vs. Rbb Fund |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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