Correlation Between Aig Government and Eic Value
Can any of the company-specific risk be diversified away by investing in both Aig Government and Eic Value 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 Eic Value 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 Eic Value Fund, you can compare the effects of market volatilities on Aig Government and Eic Value 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 Eic Value. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aig Government and Eic Value.
Diversification Opportunities for Aig Government and Eic Value
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Aig and Eic is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Aig Government Money and Eic Value Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eic Value Fund 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 Eic Value. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eic Value Fund has no effect on the direction of Aig Government i.e., Aig Government and Eic Value go up and down completely randomly.
Pair Corralation between Aig Government and Eic Value
Assuming the 90 days horizon Aig Government is expected to generate 10.83 times less return on investment than Eic Value. But when comparing it to its historical volatility, Aig Government Money is 4.07 times less risky than Eic Value. It trades about 0.02 of its potential returns per unit of risk. Eic Value Fund is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,511 in Eic Value Fund on October 28, 2024 and sell it today you would earn a total of 236.00 from holding Eic Value Fund or generate 15.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aig Government Money vs. Eic Value Fund
Performance |
| Timeline |
| Aig Government Money |
| Eic Value Fund |
Aig Government and Eic Value Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aig Government and Eic Value
The main advantage of trading using opposite Aig Government and Eic Value positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aig Government position performs unexpectedly, Eic Value 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 Eic Value will offset losses from the drop in Eic Value's long position.| Aig Government vs. Angel Oak Financial | Aig Government vs. John Hancock Financial | Aig Government vs. Prudential Financial Services | Aig Government vs. Pimco Capital Sec |
| Eic Value vs. Franklin Gold Precious | Eic Value vs. Global Gold Fund | Eic Value vs. World Precious Minerals | Eic Value vs. Precious Metals And |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |