Correlation Between Valic Company and Large Capital
Can any of the company-specific risk be diversified away by investing in both Valic Company and Large Capital 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 Valic Company and Large Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Valic Company I and Large Capital Growth, you can compare the effects of market volatilities on Valic Company and Large Capital 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 Valic Company with a short position of Large Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valic Company and Large Capital.
Diversification Opportunities for Valic Company and Large Capital
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Valic and Large is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Valic Company I and Large Capital Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Large Capital Growth and Valic Company 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 Valic Company I are associated (or correlated) with Large Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Large Capital Growth has no effect on the direction of Valic Company i.e., Valic Company and Large Capital go up and down completely randomly.
Pair Corralation between Valic Company and Large Capital
Assuming the 90 days horizon Valic Company I is expected to generate 1.42 times more return on investment than Large Capital. However, Valic Company is 1.42 times more volatile than Large Capital Growth. It trades about 0.14 of its potential returns per unit of risk. Large Capital Growth is currently generating about 0.1 per unit of risk. If you would invest 2,038 in Valic Company I on August 31, 2024 and sell it today you would earn a total of 69.00 from holding Valic Company I or generate 3.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Valic Company I vs. Large Capital Growth
Performance |
| Timeline |
| Valic Company I |
| Large Capital Growth |
Valic Company and Large Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Valic Company and Large Capital
The main advantage of trading using opposite Valic Company and Large Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valic Company position performs unexpectedly, Large Capital 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 Large Capital will offset losses from the drop in Large Capital's long position.| Valic Company vs. Global Gold Fund | Valic Company vs. Vy Goldman Sachs | Valic Company vs. Franklin Gold Precious | Valic Company vs. Goldman Sachs Clean |
| Large Capital vs. Goldman Sachs Government | Large Capital vs. Franklin Adjustable Government | Large Capital vs. Dreyfus Government Cash | Large Capital vs. Dws Government Money |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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