Correlation Between Aig Government and Gamco Global
Can any of the company-specific risk be diversified away by investing in both Aig Government and Gamco Global 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 Gamco Global 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 Gamco Global Gold, you can compare the effects of market volatilities on Aig Government and Gamco Global 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 Gamco Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aig Government and Gamco Global.
Diversification Opportunities for Aig Government and Gamco Global
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Aig and Gamco is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Aig Government Money and Gamco Global Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gamco Global Gold 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 Gamco Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gamco Global Gold has no effect on the direction of Aig Government i.e., Aig Government and Gamco Global go up and down completely randomly.
Pair Corralation between Aig Government and Gamco Global
Assuming the 90 days horizon Aig Government Money is expected to generate 0.22 times more return on investment than Gamco Global. However, Aig Government Money is 4.47 times less risky than Gamco Global. It trades about -0.18 of its potential returns per unit of risk. Gamco Global Gold is currently generating about -0.42 per unit of risk. If you would invest 1,008 in Aig Government Money on September 22, 2024 and sell it today you would lose (9.00) from holding Aig Government Money or give up 0.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aig Government Money vs. Gamco Global Gold
Performance |
| Timeline |
| Aig Government Money |
| Gamco Global Gold |
Aig Government and Gamco Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aig Government and Gamco Global
The main advantage of trading using opposite Aig Government and Gamco Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aig Government position performs unexpectedly, Gamco Global 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 Gamco Global will offset losses from the drop in Gamco Global'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 |
| Gamco Global vs. Guggenheim Risk Managed | Gamco Global vs. Real Estate Ultrasector | Gamco Global vs. Virtus Real Estate | Gamco Global vs. Nomura Real Estate |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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