Correlation Between Aig Government and William Blair
Can any of the company-specific risk be diversified away by investing in both Aig Government and William Blair 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 William Blair 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 William Blair International, you can compare the effects of market volatilities on Aig Government and William Blair 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 William Blair. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aig Government and William Blair.
Diversification Opportunities for Aig Government and William Blair
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Aig and William is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Aig Government Money and William Blair International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on William Blair Intern 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 William Blair. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of William Blair Intern has no effect on the direction of Aig Government i.e., Aig Government and William Blair go up and down completely randomly.
Pair Corralation between Aig Government and William Blair
Assuming the 90 days horizon Aig Government is expected to generate 2.84 times less return on investment than William Blair. But when comparing it to its historical volatility, Aig Government Money is 4.73 times less risky than William Blair. It trades about 0.1 of its potential returns per unit of risk. William Blair International is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,202 in William Blair International on September 15, 2024 and sell it today you would earn a total of 72.00 from holding William Blair International or generate 5.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aig Government Money vs. William Blair International
Performance |
| Timeline |
| Aig Government Money |
| William Blair Intern |
Aig Government and William Blair Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aig Government and William Blair
The main advantage of trading using opposite Aig Government and William Blair positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aig Government position performs unexpectedly, William Blair 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 William Blair will offset losses from the drop in William Blair'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 |
| William Blair vs. William Blair China | William Blair vs. William Blair Small Mid | William Blair vs. William Blair Small Mid | William Blair vs. William Blair Small Mid |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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