Correlation Between Tiaa-cref Large-cap and Aig Government
Can any of the company-specific risk be diversified away by investing in both Tiaa-cref Large-cap 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 Tiaa-cref Large-cap and Aig Government into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tiaa Cref Large Cap Growth and Aig Government Money, you can compare the effects of market volatilities on Tiaa-cref Large-cap 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 Tiaa-cref Large-cap with a short position of Aig Government. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tiaa-cref Large-cap and Aig Government.
Diversification Opportunities for Tiaa-cref Large-cap and Aig Government
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Tiaa-cref and Aig is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Tiaa Cref Large Cap 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 Tiaa-cref Large-cap 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 Tiaa Cref Large Cap 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 Tiaa-cref Large-cap i.e., Tiaa-cref Large-cap and Aig Government go up and down completely randomly.
Pair Corralation between Tiaa-cref Large-cap and Aig Government
Assuming the 90 days horizon Tiaa Cref Large Cap Growth is expected to under-perform the Aig Government. In addition to that, Tiaa-cref Large-cap is 7.89 times more volatile than Aig Government Money. It trades about 0.0 of its total potential returns per unit of risk. Aig Government Money is currently generating about 0.11 per unit of volatility. If you would invest 1,000.00 in Aig Government Money on October 25, 2024 and sell it today you would earn a total of 3.00 from holding Aig Government Money or generate 0.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tiaa Cref Large Cap Growth vs. Aig Government Money
Performance |
| Timeline |
| Tiaa-cref Large-cap |
| Aig Government Money |
Tiaa-cref Large-cap and Aig Government Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tiaa-cref Large-cap and Aig Government
The main advantage of trading using opposite Tiaa-cref Large-cap and Aig Government positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tiaa-cref Large-cap 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.| Tiaa-cref Large-cap vs. Ab Municipal Bond | Tiaa-cref Large-cap vs. Alpine Ultra Short | Tiaa-cref Large-cap vs. Intermediate Term Tax Free Bond | Tiaa-cref Large-cap vs. Transamerica Intermediate Muni |
| Aig Government vs. Virtus Seix Government | Aig Government vs. Alpine Ultra Short | Aig Government vs. Old Westbury Municipal | Aig Government vs. Intermediate Term Tax Free Bond |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |