Correlation Between Aig Government and Fuller Thaler
Can any of the company-specific risk be diversified away by investing in both Aig Government and Fuller Thaler 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 Fuller Thaler 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 Fuller Thaler Behavioral, you can compare the effects of market volatilities on Aig Government and Fuller Thaler 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 Fuller Thaler. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aig Government and Fuller Thaler.
Diversification Opportunities for Aig Government and Fuller Thaler
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aig and Fuller is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Aig Government Money and Fuller Thaler Behavioral in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fuller Thaler Behavioral 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 Fuller Thaler. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fuller Thaler Behavioral has no effect on the direction of Aig Government i.e., Aig Government and Fuller Thaler go up and down completely randomly.
Pair Corralation between Aig Government and Fuller Thaler
Assuming the 90 days horizon Aig Government is expected to generate 3.25 times less return on investment than Fuller Thaler. But when comparing it to its historical volatility, Aig Government Money is 9.7 times less risky than Fuller Thaler. It trades about 0.12 of its potential returns per unit of risk. Fuller Thaler Behavioral is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 2,591 in Fuller Thaler Behavioral on September 3, 2024 and sell it today you would earn a total of 191.00 from holding Fuller Thaler Behavioral or generate 7.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aig Government Money vs. Fuller Thaler Behavioral
Performance |
| Timeline |
| Aig Government Money |
| Fuller Thaler Behavioral |
Aig Government and Fuller Thaler Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aig Government and Fuller Thaler
The main advantage of trading using opposite Aig Government and Fuller Thaler positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aig Government position performs unexpectedly, Fuller Thaler 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 Fuller Thaler will offset losses from the drop in Fuller Thaler's long position.| Aig Government vs. Vanguard Massachusetts Tax Exempt | Aig Government vs. Nuveen Massachusetts Municipal | Aig Government vs. Nuveen Massachusetts Municipal | Aig Government vs. Mfs Massachusetts Municipal |
| Fuller Thaler vs. Government Securities Fund | Fuller Thaler vs. Aig Government Money | Fuller Thaler vs. Blackrock Government Bond | Fuller Thaler vs. Short Term Government 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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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