Correlation Between Aig Government and Vy(r) Baron
Can any of the company-specific risk be diversified away by investing in both Aig Government and Vy(r) Baron 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 Vy(r) Baron 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 Vy Baron Growth, you can compare the effects of market volatilities on Aig Government and Vy(r) Baron 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 Vy(r) Baron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aig Government and Vy(r) Baron.
Diversification Opportunities for Aig Government and Vy(r) Baron
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Aig and Vy(r) is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Aig Government Money and Vy Baron Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vy Baron Growth 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 Vy(r) Baron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vy Baron Growth has no effect on the direction of Aig Government i.e., Aig Government and Vy(r) Baron go up and down completely randomly.
Pair Corralation between Aig Government and Vy(r) Baron
Assuming the 90 days horizon Aig Government Money is expected to generate 0.19 times more return on investment than Vy(r) Baron. However, Aig Government Money is 5.16 times less risky than Vy(r) Baron. It trades about -0.16 of its potential returns per unit of risk. Vy Baron Growth is currently generating about -0.19 per unit of risk. If you would invest 1,010 in Aig Government Money on October 14, 2024 and sell it today you would lose (7.00) from holding Aig Government Money or give up 0.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aig Government Money vs. Vy Baron Growth
Performance |
| Timeline |
| Aig Government Money |
| Vy Baron Growth |
Aig Government and Vy(r) Baron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aig Government and Vy(r) Baron
The main advantage of trading using opposite Aig Government and Vy(r) Baron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aig Government position performs unexpectedly, Vy(r) Baron 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 Vy(r) Baron will offset losses from the drop in Vy(r) Baron's long position.| Aig Government vs. Elfun Government Money | Aig Government vs. Money Market Obligations | Aig Government vs. Dws Government Money | Aig Government vs. Thrivent Money Market |
| Vy(r) Baron vs. Bbh Intermediate Municipal | Vy(r) Baron vs. Transamerica Intermediate Muni | Vy(r) Baron vs. Aig Government Money | Vy(r) Baron vs. Morningstar Municipal Bond |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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