Correlation Between Aig Government and Hewitt Money
Can any of the company-specific risk be diversified away by investing in both Aig Government and Hewitt 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 Hewitt 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 Hewitt Money Market, you can compare the effects of market volatilities on Aig Government and Hewitt 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 Hewitt Money. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aig Government and Hewitt Money.
Diversification Opportunities for Aig Government and Hewitt Money
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aig and Hewitt is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Aig Government Money and Hewitt Money Market in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hewitt Money Market 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 Hewitt Money. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hewitt Money Market has no effect on the direction of Aig Government i.e., Aig Government and Hewitt Money go up and down completely randomly.
Pair Corralation between Aig Government and Hewitt Money
If you would invest 1,005 in Aig Government Money on November 4, 2024 and sell it today you would earn a total of 3.00 from holding Aig Government Money or generate 0.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aig Government Money vs. Hewitt Money Market
Performance |
| Timeline |
| Aig Government Money |
| Hewitt Money Market |
Aig Government and Hewitt Money Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aig Government and Hewitt Money
The main advantage of trading using opposite Aig Government and Hewitt Money positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aig Government position performs unexpectedly, Hewitt 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 Hewitt Money will offset losses from the drop in Hewitt Money's long position.| Aig Government vs. Federated Emerging Market | Aig Government vs. Angel Oak Multi Strategy | Aig Government vs. Siit Emerging Markets | Aig Government vs. Ashmore Emerging Markets |
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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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