Correlation Between Valic Company and Aquagold International
Can any of the company-specific risk be diversified away by investing in both Valic Company and Aquagold International 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 Aquagold International 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 Aquagold International, you can compare the effects of market volatilities on Valic Company and Aquagold International 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 Aquagold International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valic Company and Aquagold International.
Diversification Opportunities for Valic Company and Aquagold International
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Valic and Aquagold is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Valic Company I and Aquagold International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aquagold International 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 Aquagold International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aquagold International has no effect on the direction of Valic Company i.e., Valic Company and Aquagold International go up and down completely randomly.
Pair Corralation between Valic Company and Aquagold International
Assuming the 90 days horizon Valic Company is expected to generate 67.49 times less return on investment than Aquagold International. But when comparing it to its historical volatility, Valic Company I is 94.67 times less risky than Aquagold International. It trades about 0.08 of its potential returns per unit of risk. Aquagold International is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 26.00 in Aquagold International on August 23, 2024 and sell it today you would lose (25.40) from holding Aquagold International or give up 97.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Valic Company I vs. Aquagold International
Performance |
| Timeline |
| Valic Company I |
| Aquagold International |
Valic Company and Aquagold International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Valic Company and Aquagold International
The main advantage of trading using opposite Valic Company and Aquagold International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valic Company position performs unexpectedly, Aquagold International 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 Aquagold International will offset losses from the drop in Aquagold International's long position.| Valic Company vs. ABIVAX Socit Anonyme | Valic Company vs. SCOR PK | Valic Company vs. HUMANA INC | Valic Company vs. Aquagold International |
| Aquagold International vs. PepsiCo | Aquagold International vs. Coca Cola Consolidated | Aquagold International vs. Monster Beverage Corp | Aquagold International vs. Celsius Holdings |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |