Correlation Between Aig Government and Gabelli Money
Can any of the company-specific risk be diversified away by investing in both Aig Government and Gabelli Money 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 Gabelli Money 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 The Gabelli Money, you can compare the effects of market volatilities on Aig Government and Gabelli Money 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 Gabelli Money. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aig Government and Gabelli Money.
Diversification Opportunities for Aig Government and Gabelli Money
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aig and Gabelli is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Aig Government Money and The Gabelli Money in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gabelli Money 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 Gabelli Money. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gabelli Money has no effect on the direction of Aig Government i.e., Aig Government and Gabelli Money go up and down completely randomly.
Pair Corralation between Aig Government and Gabelli Money
Assuming the 90 days horizon Aig Government is expected to generate 1.24 times less return on investment than Gabelli Money. But when comparing it to its historical volatility, Aig Government Money is 2.06 times less risky than Gabelli Money. It trades about 0.09 of its potential returns per unit of risk. The Gabelli Money is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 95.00 in The Gabelli Money on September 14, 2024 and sell it today you would earn a total of 5.00 from holding The Gabelli Money or generate 5.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 97.81% |
| Values | Daily Returns |
Aig Government Money vs. The Gabelli Money
Performance |
| Timeline |
| Aig Government Money |
| Gabelli Money |
Aig Government and Gabelli Money Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aig Government and Gabelli Money
The main advantage of trading using opposite Aig Government and Gabelli Money positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aig Government position performs unexpectedly, Gabelli Money 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 Gabelli Money will offset losses from the drop in Gabelli Money'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 |
| Gabelli Money vs. Artisan High Income | Gabelli Money vs. Touchstone Premium Yield | Gabelli Money vs. Alliancebernstein Bond | Gabelli Money vs. California Bond 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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