Correlation Between Valic Company and Foreign Value
Can any of the company-specific risk be diversified away by investing in both Valic Company and Foreign Value 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 Foreign Value 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 Foreign Value Fund, you can compare the effects of market volatilities on Valic Company and Foreign Value 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 Foreign Value. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valic Company and Foreign Value.
Diversification Opportunities for Valic Company and Foreign Value
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Valic and Foreign is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Valic Company I and Foreign Value Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Foreign Value 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 Foreign Value. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Foreign Value has no effect on the direction of Valic Company i.e., Valic Company and Foreign Value go up and down completely randomly.
Pair Corralation between Valic Company and Foreign Value
Assuming the 90 days horizon Valic Company I is expected to generate 1.1 times more return on investment than Foreign Value. However, Valic Company is 1.1 times more volatile than Foreign Value Fund. It trades about 0.28 of its potential returns per unit of risk. Foreign Value Fund is currently generating about 0.23 per unit of risk. If you would invest 1,236 in Valic Company I on October 20, 2024 and sell it today you would earn a total of 48.00 from holding Valic Company I or generate 3.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Valic Company I vs. Foreign Value Fund
Performance |
| Timeline |
| Valic Company I |
| Foreign Value |
Valic Company and Foreign Value Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Valic Company and Foreign Value
The main advantage of trading using opposite Valic Company and Foreign Value positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valic Company position performs unexpectedly, Foreign Value 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 Foreign Value will offset losses from the drop in Foreign Value's long position.| Valic Company vs. Mid Cap Index | Valic Company vs. Mid Cap Strategic | Valic Company vs. Valic Company I | Valic Company vs. Valic Company I |
| Foreign Value vs. Mid Cap Index | Foreign Value vs. Mid Cap Strategic | Foreign Value vs. Valic Company I | Foreign Value vs. Valic Company I |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |