Correlation Between Aig Government and Tiaa Cref
Can any of the company-specific risk be diversified away by investing in both Aig Government and Tiaa Cref 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 Tiaa Cref 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 Tiaa Cref Managed Allocation, you can compare the effects of market volatilities on Aig Government and Tiaa Cref 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 Tiaa Cref. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aig Government and Tiaa Cref.
Diversification Opportunities for Aig Government and Tiaa Cref
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Aig and Tiaa is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Aig Government Money and Tiaa Cref Managed Allocation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tiaa Cref 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 Tiaa Cref. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tiaa Cref Managed has no effect on the direction of Aig Government i.e., Aig Government and Tiaa Cref go up and down completely randomly.
Pair Corralation between Aig Government and Tiaa Cref
Assuming the 90 days horizon Aig Government Money is expected to generate 0.18 times more return on investment than Tiaa Cref. However, Aig Government Money is 5.5 times less risky than Tiaa Cref. It trades about 0.23 of its potential returns per unit of risk. Tiaa Cref Managed Allocation is currently generating about -0.1 per unit of risk. If you would invest 1,008 in Aig Government Money on September 15, 2024 and sell it today you would earn a total of 6.00 from holding Aig Government Money or generate 0.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aig Government Money vs. Tiaa Cref Managed Allocation
Performance |
| Timeline |
| Aig Government Money |
| Tiaa Cref Managed |
Aig Government and Tiaa Cref Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aig Government and Tiaa Cref
The main advantage of trading using opposite Aig Government and Tiaa Cref positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aig Government position performs unexpectedly, Tiaa Cref 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 Tiaa Cref will offset losses from the drop in Tiaa Cref's long position.| Aig Government vs. Simt Multi Asset Accumulation | Aig Government vs. Saat Market Growth | Aig Government vs. Simt Real Return | Aig Government vs. Simt Small Cap |
| Tiaa Cref vs. Tiaa Cref Emerging Markets | Tiaa Cref vs. Tiaa Cref Emerging Markets | Tiaa Cref vs. Tiaa Cref Emerging Markets | Tiaa Cref vs. Tiaa Cref Emerging Markets |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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