Correlation Between Aig Government and Doubleline Core
Can any of the company-specific risk be diversified away by investing in both Aig Government and Doubleline Core 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 Doubleline Core 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 Doubleline Core Fixed, you can compare the effects of market volatilities on Aig Government and Doubleline Core 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 Doubleline Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aig Government and Doubleline Core.
Diversification Opportunities for Aig Government and Doubleline Core
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Aig and Doubleline is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Aig Government Money and Doubleline Core Fixed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Doubleline Core Fixed 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 Doubleline Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Doubleline Core Fixed has no effect on the direction of Aig Government i.e., Aig Government and Doubleline Core go up and down completely randomly.
Pair Corralation between Aig Government and Doubleline Core
Assuming the 90 days horizon Aig Government is expected to generate 1.84 times less return on investment than Doubleline Core. But when comparing it to its historical volatility, Aig Government Money is 1.44 times less risky than Doubleline Core. It trades about 0.24 of its potential returns per unit of risk. Doubleline Core Fixed is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 906.00 in Doubleline Core Fixed on November 9, 2024 and sell it today you would earn a total of 15.00 from holding Doubleline Core Fixed or generate 1.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aig Government Money vs. Doubleline Core Fixed
Performance |
| Timeline |
| Aig Government Money |
| Doubleline Core Fixed |
Aig Government and Doubleline Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aig Government and Doubleline Core
The main advantage of trading using opposite Aig Government and Doubleline Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aig Government position performs unexpectedly, Doubleline Core 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 Doubleline Core will offset losses from the drop in Doubleline Core's long position.| Aig Government vs. Elfun Government Money | Aig Government vs. Jpmorgan Government Bond | Aig Government vs. Dws Government Money | Aig Government vs. John Hancock Government |
| Doubleline Core vs. Ab Bond Inflation | Doubleline Core vs. Aqr Managed Futures | Doubleline Core vs. Credit Suisse Multialternative | Doubleline Core vs. Ab Bond Inflation |
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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