Correlation Between Aig Government and Guggenheim Managed
Can any of the company-specific risk be diversified away by investing in both Aig Government and Guggenheim Managed 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 Guggenheim Managed 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 Guggenheim Managed Futures, you can compare the effects of market volatilities on Aig Government and Guggenheim Managed 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 Guggenheim Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aig Government and Guggenheim Managed.
Diversification Opportunities for Aig Government and Guggenheim Managed
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Aig and Guggenheim is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Aig Government Money and Guggenheim Managed Futures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guggenheim 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 Guggenheim Managed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guggenheim Managed has no effect on the direction of Aig Government i.e., Aig Government and Guggenheim Managed go up and down completely randomly.
Pair Corralation between Aig Government and Guggenheim Managed
Assuming the 90 days horizon Aig Government Money is expected to generate 0.25 times more return on investment than Guggenheim Managed. However, Aig Government Money is 3.98 times less risky than Guggenheim Managed. It trades about 0.09 of its potential returns per unit of risk. Guggenheim Managed Futures is currently generating about -0.05 per unit of risk. If you would invest 1,005 in Aig Government Money on November 7, 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. Guggenheim Managed Futures
Performance |
| Timeline |
| Aig Government Money |
| Guggenheim Managed |
Aig Government and Guggenheim Managed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aig Government and Guggenheim Managed
The main advantage of trading using opposite Aig Government and Guggenheim Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aig Government position performs unexpectedly, Guggenheim Managed 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 Guggenheim Managed will offset losses from the drop in Guggenheim Managed's long position.| Aig Government vs. Vanguard Money Market | Aig Government vs. Hewitt Money Market | Aig Government vs. Gabelli Global Financial | Aig Government vs. Franklin Government Money |
| Guggenheim Managed vs. Aqr Diversified Arbitrage | Guggenheim Managed vs. Diversified Income Fund | Guggenheim Managed vs. Lord Abbett Diversified | Guggenheim Managed vs. Guggenheim Diversified Income |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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