Correlation Between Aig Government and Pimco Trends
Can any of the company-specific risk be diversified away by investing in both Aig Government and Pimco Trends 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 Pimco Trends 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 Pimco Trends Managed, you can compare the effects of market volatilities on Aig Government and Pimco Trends 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 Pimco Trends. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aig Government and Pimco Trends.
Diversification Opportunities for Aig Government and Pimco Trends
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Aig and Pimco is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Aig Government Money and Pimco Trends Managed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pimco Trends Managed 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 Pimco Trends. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pimco Trends Managed has no effect on the direction of Aig Government i.e., Aig Government and Pimco Trends go up and down completely randomly.
Pair Corralation between Aig Government and Pimco Trends
Assuming the 90 days horizon Aig Government Money is expected to generate 0.28 times more return on investment than Pimco Trends. However, Aig Government Money is 3.57 times less risky than Pimco Trends. It trades about 0.09 of its potential returns per unit of risk. Pimco Trends Managed is currently generating about -0.19 per unit of risk. If you would invest 1,005 in Aig Government Money on November 5, 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 | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aig Government Money vs. Pimco Trends Managed
Performance |
| Timeline |
| Aig Government Money |
| Pimco Trends Managed |
Aig Government and Pimco Trends Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aig Government and Pimco Trends
The main advantage of trading using opposite Aig Government and Pimco Trends positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aig Government position performs unexpectedly, Pimco Trends 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 Pimco Trends will offset losses from the drop in Pimco Trends' long position.| Aig Government vs. Federated Emerging Market | Aig Government vs. Angel Oak Multi Strategy | Aig Government vs. Siit Emerging Markets | Aig Government vs. Ashmore Emerging Markets |
| Pimco Trends vs. Multisector Bond Sma | Pimco Trends vs. Rbc Bluebay Emerging | Pimco Trends vs. Ab Bond Inflation | Pimco Trends vs. Goldman Sachs 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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