Correlation Between Growth Fund and Valic Company
Can any of the company-specific risk be diversified away by investing in both Growth Fund and Valic Company 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 Growth Fund and Valic Company into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Growth Fund Growth and Valic Company I, you can compare the effects of market volatilities on Growth Fund and Valic Company 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 Growth Fund with a short position of Valic Company. Check out your portfolio center. Please also check ongoing floating volatility patterns of Growth Fund and Valic Company.
Diversification Opportunities for Growth Fund and Valic Company
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Growth and Valic is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Growth Fund Growth and Valic Company I in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Valic Company I and Growth Fund 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 Growth Fund Growth are associated (or correlated) with Valic Company. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Valic Company I has no effect on the direction of Growth Fund i.e., Growth Fund and Valic Company go up and down completely randomly.
Pair Corralation between Growth Fund and Valic Company
Assuming the 90 days horizon Growth Fund is expected to generate 1.78 times less return on investment than Valic Company. In addition to that, Growth Fund is 1.97 times more volatile than Valic Company I. It trades about 0.09 of its total potential returns per unit of risk. Valic Company I is currently generating about 0.3 per unit of volatility. If you would invest 1,433 in Valic Company I on November 2, 2024 and sell it today you would earn a total of 71.00 from holding Valic Company I or generate 4.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Growth Fund Growth vs. Valic Company I
Performance |
| Timeline |
| Growth Fund Growth |
| Valic Company I |
Growth Fund and Valic Company Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Growth Fund and Valic Company
The main advantage of trading using opposite Growth Fund and Valic Company positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Growth Fund position performs unexpectedly, Valic Company 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 Valic Company will offset losses from the drop in Valic Company's long position.| Growth Fund vs. Vy T Rowe | Growth Fund vs. Allianzgi Diversified Income | Growth Fund vs. Oklahoma College Savings | Growth Fund vs. Aqr Diversified Arbitrage |
| Valic Company vs. Mid Cap Index | Valic Company vs. Mid Cap Strategic | Valic Company vs. Valic Company I | Valic Company 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| 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 | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |