Correlation Between Ridgeworth Seix and Aig Government
Can any of the company-specific risk be diversified away by investing in both Ridgeworth Seix 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 Ridgeworth Seix and Aig Government into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ridgeworth Seix Investment and Aig Government Money, you can compare the effects of market volatilities on Ridgeworth Seix 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 Ridgeworth Seix with a short position of Aig Government. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ridgeworth Seix and Aig Government.
Diversification Opportunities for Ridgeworth Seix and Aig Government
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Ridgeworth and Aig is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Ridgeworth Seix Investment 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 Ridgeworth Seix 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 Ridgeworth Seix Investment 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 Ridgeworth Seix i.e., Ridgeworth Seix and Aig Government go up and down completely randomly.
Pair Corralation between Ridgeworth Seix and Aig Government
Assuming the 90 days horizon Ridgeworth Seix is expected to generate 1.98 times less return on investment than Aig Government. In addition to that, Ridgeworth Seix is 1.14 times more volatile than Aig Government Money. It trades about 0.21 of its total potential returns per unit of risk. Aig Government Money is currently generating about 0.49 per unit of volatility. If you would invest 1,006 in Aig Government Money on September 14, 2024 and sell it today you would earn a total of 11.00 from holding Aig Government Money or generate 1.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ridgeworth Seix Investment vs. Aig Government Money
Performance |
| Timeline |
| Ridgeworth Seix Inve |
| Aig Government Money |
Ridgeworth Seix and Aig Government Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ridgeworth Seix and Aig Government
The main advantage of trading using opposite Ridgeworth Seix and Aig Government positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ridgeworth Seix 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.| Ridgeworth Seix vs. Hsbc Treasury Money | Ridgeworth Seix vs. Ab Government Exchange | Ridgeworth Seix vs. Prudential Government Money | Ridgeworth Seix vs. Matson Money Equity |
| 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 |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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