Correlation Between Aig Government and Dreyfus Government
Can any of the company-specific risk be diversified away by investing in both Aig Government and Dreyfus Government 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 Dreyfus Government 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 Dreyfus Government Cash, you can compare the effects of market volatilities on Aig Government and Dreyfus Government 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 Dreyfus Government. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aig Government and Dreyfus Government.
Diversification Opportunities for Aig Government and Dreyfus Government
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Aig and Dreyfus is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Aig Government Money and Dreyfus Government Cash in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dreyfus Government Cash 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 Dreyfus Government. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dreyfus Government Cash has no effect on the direction of Aig Government i.e., Aig Government and Dreyfus Government go up and down completely randomly.
Pair Corralation between Aig Government and Dreyfus Government
If you would invest 1,004 in Aig Government Money on November 3, 2024 and sell it today you would earn a total of 4.00 from holding Aig Government Money or generate 0.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 90.91% |
| Values | Daily Returns |
Aig Government Money vs. Dreyfus Government Cash
Performance |
| Timeline |
| Aig Government Money |
| Dreyfus Government Cash |
Aig Government and Dreyfus Government Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aig Government and Dreyfus Government
The main advantage of trading using opposite Aig Government and Dreyfus Government positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aig Government position performs unexpectedly, Dreyfus Government 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 Dreyfus Government will offset losses from the drop in Dreyfus Government's long position.| Aig Government vs. Blackrock Moderate Prepared | Aig Government vs. Tiaa Cref Lifestyle Moderate | Aig Government vs. Wilmington Trust Retirement | Aig Government vs. Lifestyle Ii Moderate |
| Dreyfus Government vs. Fulcrum Diversified Absolute | Dreyfus Government vs. Stone Ridge Diversified | Dreyfus Government vs. Voya Solution Conservative | Dreyfus Government vs. Tax Free Conservative Income |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |