Correlation Between Siit Screened and Aig Government
Can any of the company-specific risk be diversified away by investing in both Siit Screened 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 Siit Screened and Aig Government into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Siit Screened World and Aig Government Money, you can compare the effects of market volatilities on Siit Screened 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 Siit Screened with a short position of Aig Government. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siit Screened and Aig Government.
Diversification Opportunities for Siit Screened and Aig Government
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Siit and Aig is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Siit Screened World 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 Siit Screened 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 Siit Screened World 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 Siit Screened i.e., Siit Screened and Aig Government go up and down completely randomly.
Pair Corralation between Siit Screened and Aig Government
Assuming the 90 days horizon Siit Screened World is expected to generate 3.6 times more return on investment than Aig Government. However, Siit Screened is 3.6 times more volatile than Aig Government Money. It trades about 0.06 of its potential returns per unit of risk. Aig Government Money is currently generating about 0.06 per unit of risk. If you would invest 1,002 in Siit Screened World on September 2, 2024 and sell it today you would earn a total of 158.00 from holding Siit Screened World or generate 15.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siit Screened World vs. Aig Government Money
Performance |
| Timeline |
| Siit Screened World |
| Aig Government Money |
Siit Screened and Aig Government Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siit Screened and Aig Government
The main advantage of trading using opposite Siit Screened and Aig Government positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siit Screened 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.| Siit Screened vs. Simt Multi Asset Accumulation | Siit Screened vs. Saat Market Growth | Siit Screened vs. Simt Real Return | Siit Screened vs. Simt Small Cap |
| Aig Government vs. Artisan Thematic Fund | Aig Government vs. Growth Opportunities Fund | Aig Government vs. Volumetric Fund Volumetric | Aig Government vs. Small Cap Stock |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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