Correlation Between Valic Company and Strategic Allocation:
Can any of the company-specific risk be diversified away by investing in both Valic Company and Strategic Allocation: 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 Strategic Allocation: 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 Strategic Allocation Aggressive, you can compare the effects of market volatilities on Valic Company and Strategic Allocation: 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 Strategic Allocation:. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valic Company and Strategic Allocation:.
Diversification Opportunities for Valic Company and Strategic Allocation:
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Valic and Strategic is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Valic Company I and Strategic Allocation Aggressiv in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Strategic Allocation: 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 Strategic Allocation:. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Strategic Allocation: has no effect on the direction of Valic Company i.e., Valic Company and Strategic Allocation: go up and down completely randomly.
Pair Corralation between Valic Company and Strategic Allocation:
Assuming the 90 days horizon Valic Company I is expected to generate 1.72 times more return on investment than Strategic Allocation:. However, Valic Company is 1.72 times more volatile than Strategic Allocation Aggressive. It trades about 0.21 of its potential returns per unit of risk. Strategic Allocation Aggressive is currently generating about 0.09 per unit of risk. If you would invest 1,276 in Valic Company I on October 23, 2024 and sell it today you would earn a total of 55.00 from holding Valic Company I or generate 4.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 94.74% |
| Values | Daily Returns |
Valic Company I vs. Strategic Allocation Aggressiv
Performance |
| Timeline |
| Valic Company I |
| Strategic Allocation: |
Valic Company and Strategic Allocation: Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Valic Company and Strategic Allocation:
The main advantage of trading using opposite Valic Company and Strategic Allocation: positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valic Company position performs unexpectedly, Strategic Allocation: 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 Strategic Allocation: will offset losses from the drop in Strategic Allocation:'s long position.| Valic Company vs. Tiaa Cref Life Funds | Valic Company vs. Franklin Government Money | Valic Company vs. Bbh Trust | Valic Company vs. Pace Select Advisors |
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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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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