Correlation Between Valic Company and Stock Index
Can any of the company-specific risk be diversified away by investing in both Valic Company and Stock Index 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 Stock Index 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 Stock Index Fund, you can compare the effects of market volatilities on Valic Company and Stock Index 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 Stock Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valic Company and Stock Index.
Diversification Opportunities for Valic Company and Stock Index
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Valic and Stock is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Valic Company I and Stock Index Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stock Index Fund 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 Stock Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stock Index Fund has no effect on the direction of Valic Company i.e., Valic Company and Stock Index go up and down completely randomly.
Pair Corralation between Valic Company and Stock Index
Assuming the 90 days horizon Valic Company is expected to generate 4.14 times less return on investment than Stock Index. But when comparing it to its historical volatility, Valic Company I is 2.28 times less risky than Stock Index. It trades about 0.09 of its potential returns per unit of risk. Stock Index Fund is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 5,890 in Stock Index Fund on August 30, 2024 and sell it today you would earn a total of 174.00 from holding Stock Index Fund or generate 2.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Valic Company I vs. Stock Index Fund
Performance |
| Timeline |
| Valic Company I |
| Stock Index Fund |
Valic Company and Stock Index Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Valic Company and Stock Index
The main advantage of trading using opposite Valic Company and Stock Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valic Company position performs unexpectedly, Stock Index 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 Stock Index will offset losses from the drop in Stock Index's long position.| Valic Company vs. Janus Global Technology | Valic Company vs. Invesco Technology Fund | Valic Company vs. Firsthand Technology Opportunities | Valic Company vs. Allianzgi Technology Fund |
| Stock Index vs. Sterling Capital Short | Stock Index vs. Transamerica Funds | Stock Index vs. Barings Active Short | Stock Index vs. Touchstone Ohio Tax |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |