Correlation Between Aig Government and Tiaa-cref Large-cap
Can any of the company-specific risk be diversified away by investing in both Aig Government and Tiaa-cref Large-cap 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 Large-cap 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 Large Cap Growth, you can compare the effects of market volatilities on Aig Government and Tiaa-cref Large-cap 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 Large-cap. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aig Government and Tiaa-cref Large-cap.
Diversification Opportunities for Aig Government and Tiaa-cref Large-cap
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Aig and Tiaa-cref is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Aig Government Money and Tiaa Cref Large Cap Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tiaa-cref 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 Tiaa-cref Large-cap. 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 Large-cap has no effect on the direction of Aig Government i.e., Aig Government and Tiaa-cref Large-cap go up and down completely randomly.
Pair Corralation between Aig Government and Tiaa-cref Large-cap
Assuming the 90 days horizon Aig Government Money is expected to generate 0.13 times more return on investment than Tiaa-cref Large-cap. However, Aig Government Money is 7.89 times less risky than Tiaa-cref Large-cap. It trades about 0.11 of its potential returns per unit of risk. Tiaa Cref Large Cap Growth is currently generating about 0.0 per unit of risk. If you would invest 1,000.00 in Aig Government Money on October 25, 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 Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aig Government Money vs. Tiaa Cref Large Cap Growth
Performance |
| Timeline |
| Aig Government Money |
| Tiaa-cref Large-cap |
Aig Government and Tiaa-cref Large-cap Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aig Government and Tiaa-cref Large-cap
The main advantage of trading using opposite Aig Government and Tiaa-cref Large-cap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aig Government position performs unexpectedly, Tiaa-cref Large-cap 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 Large-cap will offset losses from the drop in Tiaa-cref Large-cap's long position.| Aig Government vs. Virtus Seix Government | Aig Government vs. Alpine Ultra Short | Aig Government vs. Old Westbury Municipal | Aig Government vs. Intermediate Term Tax Free Bond |
| Tiaa-cref Large-cap vs. Ab Municipal Bond | Tiaa-cref Large-cap vs. Alpine Ultra Short | Tiaa-cref Large-cap vs. Intermediate Term Tax Free Bond | Tiaa-cref Large-cap vs. Transamerica Intermediate Muni |
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 CEOs Directory module to screen CEOs from public companies around the world.
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