Correlation Between Aig Government and Harbor Mid
Can any of the company-specific risk be diversified away by investing in both Aig Government and Harbor Mid 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 Harbor Mid 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 Harbor Mid Cap, you can compare the effects of market volatilities on Aig Government and Harbor Mid 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 Harbor Mid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aig Government and Harbor Mid.
Diversification Opportunities for Aig Government and Harbor Mid
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Aig and Harbor is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Aig Government Money and Harbor Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harbor Mid Cap 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 Harbor Mid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harbor Mid Cap has no effect on the direction of Aig Government i.e., Aig Government and Harbor Mid go up and down completely randomly.
Pair Corralation between Aig Government and Harbor Mid
Assuming the 90 days horizon Aig Government is expected to generate 8.29 times less return on investment than Harbor Mid. But when comparing it to its historical volatility, Aig Government Money is 4.59 times less risky than Harbor Mid. It trades about 0.04 of its potential returns per unit of risk. Harbor Mid Cap is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,350 in Harbor Mid Cap on September 12, 2024 and sell it today you would earn a total of 184.00 from holding Harbor Mid Cap or generate 13.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Aig Government Money vs. Harbor Mid Cap
Performance |
| Timeline |
| Aig Government Money |
| Harbor Mid Cap |
Aig Government and Harbor Mid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aig Government and Harbor Mid
The main advantage of trading using opposite Aig Government and Harbor Mid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aig Government position performs unexpectedly, Harbor Mid 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 Harbor Mid will offset losses from the drop in Harbor Mid'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 |
| Harbor Mid vs. Ab Government Exchange | Harbor Mid vs. John Hancock Money | Harbor Mid vs. Aig Government Money | Harbor Mid vs. Blackrock Exchange Portfolio |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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