Correlation Between Aig Government and Money Market
Can any of the company-specific risk be diversified away by investing in both Aig Government and Money Market 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 Money Market 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 Money Market Obligations, you can compare the effects of market volatilities on Aig Government and Money Market 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 Money Market. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aig Government and Money Market.
Diversification Opportunities for Aig Government and Money Market
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aig and Money is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Aig Government Money and Money Market Obligations in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Money Market Obligations 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 Money Market. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Money Market Obligations has no effect on the direction of Aig Government i.e., Aig Government and Money Market go up and down completely randomly.
Pair Corralation between Aig Government and Money Market
If you would invest 1,000.00 in Aig Government Money on October 25, 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. Money Market Obligations
Performance |
| Timeline |
| Aig Government Money |
| Money Market Obligations |
Aig Government and Money Market Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aig Government and Money Market
The main advantage of trading using opposite Aig Government and Money Market positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aig Government position performs unexpectedly, Money Market 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 Money Market will offset losses from the drop in Money Market's long position.| Aig Government vs. Virtus Seix Government | Aig Government vs. Alpine Ultra Short | Aig Government vs. Old Westbury Municipal | Aig Government vs. Intermediate Term Tax Free Bond |
| Money Market vs. Pace High Yield | Money Market vs. Victory High Yield | Money Market vs. Artisan High Income | Money Market vs. Lord Abbett Short |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |