Correlation Between Valic Company and Siit Limited
Can any of the company-specific risk be diversified away by investing in both Valic Company and Siit Limited 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 Siit Limited 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 Siit Limited Duration, you can compare the effects of market volatilities on Valic Company and Siit Limited 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 Siit Limited. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valic Company and Siit Limited.
Diversification Opportunities for Valic Company and Siit Limited
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Valic and Siit is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Valic Company I and Siit Limited Duration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siit Limited Duration 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 Siit Limited. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siit Limited Duration has no effect on the direction of Valic Company i.e., Valic Company and Siit Limited go up and down completely randomly.
Pair Corralation between Valic Company and Siit Limited
Assuming the 90 days horizon Valic Company I is expected to generate 3.49 times more return on investment than Siit Limited. However, Valic Company is 3.49 times more volatile than Siit Limited Duration. It trades about 0.1 of its potential returns per unit of risk. Siit Limited Duration is currently generating about 0.18 per unit of risk. If you would invest 1,362 in Valic Company I on August 23, 2024 and sell it today you would earn a total of 86.00 from holding Valic Company I or generate 6.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.2% |
| Values | Daily Returns |
Valic Company I vs. Siit Limited Duration
Performance |
| Timeline |
| Valic Company I |
| Siit Limited Duration |
Valic Company and Siit Limited Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Valic Company and Siit Limited
The main advantage of trading using opposite Valic Company and Siit Limited positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valic Company position performs unexpectedly, Siit Limited 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 Siit Limited will offset losses from the drop in Siit Limited's long position.| Valic Company vs. ABIVAX Socit Anonyme | Valic Company vs. SCOR PK | Valic Company vs. HUMANA INC | Valic Company vs. Aquagold International |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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