Correlation Between Aig Government and Delaware Extended
Can any of the company-specific risk be diversified away by investing in both Aig Government and Delaware Extended 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 Delaware Extended 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 Delaware Extended Duration, you can compare the effects of market volatilities on Aig Government and Delaware Extended 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 Delaware Extended. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aig Government and Delaware Extended.
Diversification Opportunities for Aig Government and Delaware Extended
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Aig and Delaware is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Aig Government Money and Delaware Extended Duration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Delaware Extended 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 Delaware Extended. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Delaware Extended has no effect on the direction of Aig Government i.e., Aig Government and Delaware Extended go up and down completely randomly.
Pair Corralation between Aig Government and Delaware Extended
Assuming the 90 days horizon Aig Government is expected to generate 2.06 times less return on investment than Delaware Extended. But when comparing it to its historical volatility, Aig Government Money is 3.9 times less risky than Delaware Extended. It trades about 0.05 of its potential returns per unit of risk. Delaware Extended Duration is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,317 in Delaware Extended Duration on September 14, 2024 and sell it today you would earn a total of 124.00 from holding Delaware Extended Duration or generate 9.42% 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. Delaware Extended Duration
Performance |
| Timeline |
| Aig Government Money |
| Delaware Extended |
Aig Government and Delaware Extended Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aig Government and Delaware Extended
The main advantage of trading using opposite Aig Government and Delaware Extended positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aig Government position performs unexpectedly, Delaware Extended 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 Delaware Extended will offset losses from the drop in Delaware Extended'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 |
| Delaware Extended vs. Aig Government Money | Delaware Extended vs. Elfun Government Money | Delaware Extended vs. Money Market Obligations | Delaware Extended vs. Cref Money Market |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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