Correlation Between Aig Government and Highland Global
Can any of the company-specific risk be diversified away by investing in both Aig Government and Highland 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 Highland 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 Highland Global Allocation, you can compare the effects of market volatilities on Aig Government and Highland 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 Highland Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aig Government and Highland Global.
Diversification Opportunities for Aig Government and Highland Global
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Aig and Highland is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Aig Government Money and Highland Global Allocation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Highland Global Allo 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 Highland Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Highland Global Allo has no effect on the direction of Aig Government i.e., Aig Government and Highland Global go up and down completely randomly.
Pair Corralation between Aig Government and Highland Global
Assuming the 90 days horizon Aig Government is expected to generate 17.79 times less return on investment than Highland Global. But when comparing it to its historical volatility, Aig Government Money is 11.89 times less risky than Highland Global. It trades about 0.02 of its potential returns per unit of risk. Highland Global Allocation is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,003 in Highland Global Allocation on November 1, 2024 and sell it today you would earn a total of 290.00 from holding Highland Global Allocation or generate 28.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Aig Government Money vs. Highland Global Allocation
Performance |
| Timeline |
| Aig Government Money |
| Highland Global Allo |
Aig Government and Highland Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aig Government and Highland Global
The main advantage of trading using opposite Aig Government and Highland Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aig Government position performs unexpectedly, Highland 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 Highland Global will offset losses from the drop in Highland Global's long position.| Aig Government vs. Advent Claymore Convertible | Aig Government vs. Allianzgi Convertible Income | Aig Government vs. Columbia Convertible Securities | Aig Government vs. Allianzgi Convertible Income |
| Highland Global vs. Franklin Adjustable Government | Highland Global vs. Aig Government Money | Highland Global vs. Voya Government Money | Highland Global vs. Inverse Government Long |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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