Correlation Between Aig Government and Nationwide Investor
Can any of the company-specific risk be diversified away by investing in both Aig Government and Nationwide Investor 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 Nationwide Investor 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 Nationwide Investor Destinations, you can compare the effects of market volatilities on Aig Government and Nationwide Investor 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 Nationwide Investor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aig Government and Nationwide Investor.
Diversification Opportunities for Aig Government and Nationwide Investor
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Aig and Nationwide is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Aig Government Money and Nationwide Investor Destinatio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nationwide Investor 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 Nationwide Investor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nationwide Investor has no effect on the direction of Aig Government i.e., Aig Government and Nationwide Investor go up and down completely randomly.
Pair Corralation between Aig Government and Nationwide Investor
Assuming the 90 days horizon Aig Government is expected to generate 5.16 times less return on investment than Nationwide Investor. But when comparing it to its historical volatility, Aig Government Money is 3.33 times less risky than Nationwide Investor. It trades about 0.06 of its potential returns per unit of risk. Nationwide Investor Destinations is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 830.00 in Nationwide Investor Destinations on September 12, 2024 and sell it today you would earn a total of 198.00 from holding Nationwide Investor Destinations or generate 23.86% 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. Nationwide Investor Destinatio
Performance |
| Timeline |
| Aig Government Money |
| Nationwide Investor |
Aig Government and Nationwide Investor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aig Government and Nationwide Investor
The main advantage of trading using opposite Aig Government and Nationwide Investor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aig Government position performs unexpectedly, Nationwide Investor 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 Nationwide Investor will offset losses from the drop in Nationwide Investor's long position.| Aig Government vs. SCOR PK | Aig Government vs. Morningstar Unconstrained Allocation | Aig Government vs. Via Renewables | Aig Government vs. Bondbloxx ETF Trust |
| Nationwide Investor vs. Scharf Global Opportunity | Nationwide Investor vs. Legg Mason Global | Nationwide Investor vs. Barings Global Floating | Nationwide Investor vs. Ab Global Risk |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |