Correlation Between Aig Government and Us Government
Can any of the company-specific risk be diversified away by investing in both Aig Government and Us Government 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 Us Government 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 Us Government Securities, you can compare the effects of market volatilities on Aig Government and Us Government 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 Us Government. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aig Government and Us Government.
Diversification Opportunities for Aig Government and Us Government
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Aig and UGSDX is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Aig Government Money and Us Government Securities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Us Government Securities 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 Us Government. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Us Government Securities has no effect on the direction of Aig Government i.e., Aig Government and Us Government go up and down completely randomly.
Pair Corralation between Aig Government and Us Government
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. Us Government Securities
Performance |
| Timeline |
| Aig Government Money |
| Us Government Securities |
Aig Government and Us Government Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aig Government and Us Government
The main advantage of trading using opposite Aig Government and Us Government positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aig Government position performs unexpectedly, Us Government 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 Us Government will offset losses from the drop in Us Government's 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 |
| Us Government vs. Transamerica Mlp Energy | Us Government vs. Ivy Natural Resources | Us Government vs. Vanguard Energy Index | Us Government vs. Hennessy Bp Energy |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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