Correlation Between Aig Government and Maingate Mlp
Can any of the company-specific risk be diversified away by investing in both Aig Government and Maingate Mlp 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 Maingate Mlp 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 Maingate Mlp Fund, you can compare the effects of market volatilities on Aig Government and Maingate Mlp 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 Maingate Mlp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aig Government and Maingate Mlp.
Diversification Opportunities for Aig Government and Maingate Mlp
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Aig and Maingate is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Aig Government Money and Maingate Mlp Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maingate Mlp 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 Maingate Mlp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maingate Mlp has no effect on the direction of Aig Government i.e., Aig Government and Maingate Mlp go up and down completely randomly.
Pair Corralation between Aig Government and Maingate Mlp
Assuming the 90 days horizon Aig Government Money is expected to generate 0.12 times more return on investment than Maingate Mlp. However, Aig Government Money is 8.5 times less risky than Maingate Mlp. It trades about 0.0 of its potential returns per unit of risk. Maingate Mlp Fund is currently generating about -0.21 per unit of risk. If you would invest 1,009 in Aig Government Money on September 20, 2024 and sell it today you would earn a total of 0.00 from holding Aig Government Money or generate 0.0% 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. Maingate Mlp Fund
Performance |
| Timeline |
| Aig Government Money |
| Maingate Mlp |
Aig Government and Maingate Mlp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aig Government and Maingate Mlp
The main advantage of trading using opposite Aig Government and Maingate Mlp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aig Government position performs unexpectedly, Maingate Mlp 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 Maingate Mlp will offset losses from the drop in Maingate Mlp's long position.| Aig Government vs. Hartford Healthcare Hls | Aig Government vs. Eventide Healthcare Life | Aig Government vs. Delaware Healthcare Fund | Aig Government vs. Allianzgi Health Sciences |
| Maingate Mlp vs. Long Term Government Fund | Maingate Mlp vs. Aig Government Money | Maingate Mlp vs. Virtus Seix Government | Maingate Mlp vs. Dreyfus Government Cash |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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