Correlation Between Valic Company and Asg Managed
Can any of the company-specific risk be diversified away by investing in both Valic Company and Asg Managed 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 Asg Managed 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 Asg Managed Futures, you can compare the effects of market volatilities on Valic Company and Asg Managed 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 Asg Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valic Company and Asg Managed.
Diversification Opportunities for Valic Company and Asg Managed
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Valic and Asg is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Valic Company I and Asg Managed Futures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asg Managed Futures 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 Asg Managed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asg Managed Futures has no effect on the direction of Valic Company i.e., Valic Company and Asg Managed go up and down completely randomly.
Pair Corralation between Valic Company and Asg Managed
Assuming the 90 days horizon Valic Company I is expected to generate 2.32 times more return on investment than Asg Managed. However, Valic Company is 2.32 times more volatile than Asg Managed Futures. It trades about 0.04 of its potential returns per unit of risk. Asg Managed Futures is currently generating about 0.03 per unit of risk. If you would invest 1,290 in Valic Company I on October 26, 2024 and sell it today you would earn a total of 33.00 from holding Valic Company I or generate 2.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Valic Company I vs. Asg Managed Futures
Performance |
| Timeline |
| Valic Company I |
| Asg Managed Futures |
Valic Company and Asg Managed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Valic Company and Asg Managed
The main advantage of trading using opposite Valic Company and Asg Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valic Company position performs unexpectedly, Asg Managed 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 Asg Managed will offset losses from the drop in Asg Managed's long position.| Valic Company vs. T Rowe Price | Valic Company vs. Mid Cap Growth | Valic Company vs. L Abbett Growth | Valic Company vs. The Equity Growth |
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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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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