Correlation Between Saat Market and Aig Government
Can any of the company-specific risk be diversified away by investing in both Saat Market and Aig 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 Saat Market and Aig Government into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Saat Market Growth and Aig Government Money, you can compare the effects of market volatilities on Saat Market and Aig 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 Saat Market with a short position of Aig Government. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saat Market and Aig Government.
Diversification Opportunities for Saat Market and Aig Government
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Saat and Aig is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Saat Market Growth and Aig Government Money in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aig Government Money and Saat Market 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 Saat Market Growth are associated (or correlated) with Aig Government. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aig Government Money has no effect on the direction of Saat Market i.e., Saat Market and Aig Government go up and down completely randomly.
Pair Corralation between Saat Market and Aig Government
Assuming the 90 days horizon Saat Market is expected to generate 2.17 times less return on investment than Aig Government. In addition to that, Saat Market is 2.84 times more volatile than Aig Government Money. It trades about 0.09 of its total potential returns per unit of risk. Aig Government Money is currently generating about 0.56 per unit of volatility. If you would invest 1,007 in Aig Government Money on September 12, 2024 and sell it today you would earn a total of 12.00 from holding Aig Government Money or generate 1.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Saat Market Growth vs. Aig Government Money
Performance |
| Timeline |
| Saat Market Growth |
| Aig Government Money |
Saat Market and Aig Government Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saat Market and Aig Government
The main advantage of trading using opposite Saat Market and Aig Government positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saat Market position performs unexpectedly, Aig 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 Aig Government will offset losses from the drop in Aig Government's long position.| Saat Market vs. Doubleline Yield Opportunities | Saat Market vs. Pace High Yield | Saat Market vs. T Rowe Price | Saat Market vs. Morningstar Defensive Bond |
| Aig Government vs. SCOR PK | Aig Government vs. Morningstar Unconstrained Allocation | Aig Government vs. Via Renewables | Aig Government vs. Bondbloxx ETF Trust |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| CEOs Directory Screen CEOs from public companies around the world |