Correlation Between Aig Government and Guidepath(r) Managed
Can any of the company-specific risk be diversified away by investing in both Aig Government and Guidepath(r) Managed 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 Guidepath(r) Managed 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 Guidepath Managed Futures, you can compare the effects of market volatilities on Aig Government and Guidepath(r) Managed 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 Guidepath(r) Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aig Government and Guidepath(r) Managed.
Diversification Opportunities for Aig Government and Guidepath(r) Managed
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Aig and Guidepath(r) is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Aig Government Money and Guidepath Managed Futures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guidepath Managed Futures 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 Guidepath(r) Managed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guidepath Managed Futures has no effect on the direction of Aig Government i.e., Aig Government and Guidepath(r) Managed go up and down completely randomly.
Pair Corralation between Aig Government and Guidepath(r) Managed
Assuming the 90 days horizon Aig Government Money is expected to generate 0.25 times more return on investment than Guidepath(r) Managed. However, Aig Government Money is 4.08 times less risky than Guidepath(r) Managed. It trades about 0.02 of its potential returns per unit of risk. Guidepath Managed Futures is currently generating about -0.02 per unit of risk. If you would invest 991.00 in Aig Government Money on October 11, 2024 and sell it today you would earn a total of 14.00 from holding Aig Government Money or generate 1.41% 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. Guidepath Managed Futures
Performance |
| Timeline |
| Aig Government Money |
| Guidepath Managed Futures |
Aig Government and Guidepath(r) Managed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aig Government and Guidepath(r) Managed
The main advantage of trading using opposite Aig Government and Guidepath(r) Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aig Government position performs unexpectedly, Guidepath(r) Managed 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 Guidepath(r) Managed will offset losses from the drop in Guidepath(r) Managed's long position.| Aig Government vs. Dreyfusstandish Global Fixed | Aig Government vs. Ab Select Equity | Aig Government vs. Dws Equity Sector | Aig Government vs. Ab Equity Income |
| Guidepath(r) Managed vs. Prudential Government Money | Guidepath(r) Managed vs. Dws Government Money | Guidepath(r) Managed vs. Us Government Securities | Guidepath(r) Managed vs. Aig Government Money |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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