Correlation Between Aig Government and Voya Global
Can any of the company-specific risk be diversified away by investing in both Aig Government and Voya Global 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 Voya Global 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 Voya Global Perspectives, you can compare the effects of market volatilities on Aig Government and Voya Global 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 Voya Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aig Government and Voya Global.
Diversification Opportunities for Aig Government and Voya Global
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Aig and Voya is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Aig Government Money and Voya Global Perspectives in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Global Perspectives 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 Voya Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Global Perspectives has no effect on the direction of Aig Government i.e., Aig Government and Voya Global go up and down completely randomly.
Pair Corralation between Aig Government and Voya Global
Assuming the 90 days horizon Aig Government is expected to generate 1.33 times less return on investment than Voya Global. But when comparing it to its historical volatility, Aig Government Money is 3.56 times less risky than Voya Global. It trades about 0.49 of its potential returns per unit of risk. Voya Global Perspectives is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 901.00 in Voya Global Perspectives on September 13, 2024 and sell it today you would earn a total of 13.00 from holding Voya Global Perspectives or generate 1.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aig Government Money vs. Voya Global Perspectives
Performance |
| Timeline |
| Aig Government Money |
| Voya Global Perspectives |
Aig Government and Voya Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aig Government and Voya Global
The main advantage of trading using opposite Aig Government and Voya Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aig Government position performs unexpectedly, Voya Global 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 Voya Global will offset losses from the drop in Voya Global's long position.| Aig Government vs. Simt Multi Asset Accumulation | Aig Government vs. Saat Market Growth | Aig Government vs. Simt Real Return | Aig Government vs. Simt Small Cap |
| Voya Global vs. Voya Bond Index | Voya Global vs. Voya Bond Index | Voya Global vs. Voya Limited Maturity | Voya Global vs. Voya Limited Maturity |
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.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |