Correlation Between Aig Government and Neiman Large
Can any of the company-specific risk be diversified away by investing in both Aig Government and Neiman Large 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 Neiman Large 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 Neiman Large Cap, you can compare the effects of market volatilities on Aig Government and Neiman Large 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 Neiman Large. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aig Government and Neiman Large.
Diversification Opportunities for Aig Government and Neiman Large
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Aig and Neiman is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Aig Government Money and Neiman Large Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neiman Large 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 Neiman Large. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Neiman Large Cap has no effect on the direction of Aig Government i.e., Aig Government and Neiman Large go up and down completely randomly.
Pair Corralation between Aig Government and Neiman Large
Assuming the 90 days horizon Aig Government is expected to generate 12.57 times less return on investment than Neiman Large. But when comparing it to its historical volatility, Aig Government Money is 3.8 times less risky than Neiman Large. It trades about 0.06 of its potential returns per unit of risk. Neiman Large Cap is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 3,133 in Neiman Large Cap on November 1, 2024 and sell it today you would earn a total of 79.00 from holding Neiman Large Cap or generate 2.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aig Government Money vs. Neiman Large Cap
Performance |
| Timeline |
| Aig Government Money |
| Neiman Large Cap |
Aig Government and Neiman Large Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aig Government and Neiman Large
The main advantage of trading using opposite Aig Government and Neiman Large positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aig Government position performs unexpectedly, Neiman Large 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 Neiman Large will offset losses from the drop in Neiman Large's long position.| Aig Government vs. Advent Claymore Convertible | Aig Government vs. Allianzgi Convertible Income | Aig Government vs. Columbia Convertible Securities | Aig Government vs. Allianzgi Convertible Income |
| Neiman Large vs. Global Technology Portfolio | Neiman Large vs. Fidelity Advisor Technology | Neiman Large vs. Invesco Technology Fund | Neiman Large vs. Hennessy Technology Fund |
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
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |