Correlation Between Aig Government and Oshaughnessy Market
Can any of the company-specific risk be diversified away by investing in both Aig Government and Oshaughnessy 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 Oshaughnessy 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 Oshaughnessy Market Leaders, you can compare the effects of market volatilities on Aig Government and Oshaughnessy 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 Oshaughnessy Market. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aig Government and Oshaughnessy Market.
Diversification Opportunities for Aig Government and Oshaughnessy Market
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Aig and Oshaughnessy is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Aig Government Money and Oshaughnessy Market Leaders in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oshaughnessy Market 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 Oshaughnessy Market. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oshaughnessy Market has no effect on the direction of Aig Government i.e., Aig Government and Oshaughnessy Market go up and down completely randomly.
Pair Corralation between Aig Government and Oshaughnessy Market
Assuming the 90 days horizon Aig Government Money is expected to generate 0.23 times more return on investment than Oshaughnessy Market. However, Aig Government Money is 4.35 times less risky than Oshaughnessy Market. It trades about -0.26 of its potential returns per unit of risk. Oshaughnessy Market Leaders is currently generating about -0.2 per unit of risk. If you would invest 1,014 in Aig Government Money on October 13, 2024 and sell it today you would lose (11.00) from holding Aig Government Money or give up 1.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aig Government Money vs. Oshaughnessy Market Leaders
Performance |
| Timeline |
| Aig Government Money |
| Oshaughnessy Market |
Aig Government and Oshaughnessy Market Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aig Government and Oshaughnessy Market
The main advantage of trading using opposite Aig Government and Oshaughnessy Market positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aig Government position performs unexpectedly, Oshaughnessy 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 Oshaughnessy Market will offset losses from the drop in Oshaughnessy Market'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 |
| Oshaughnessy Market vs. Aig Government Money | Oshaughnessy Market vs. T Rowe Price | Oshaughnessy Market vs. Franklin Adjustable Government | Oshaughnessy Market vs. Virtus Seix Government |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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