Correlation Between Valic Company and Small-cap Momentum
Can any of the company-specific risk be diversified away by investing in both Valic Company and Small-cap Momentum 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 Small-cap Momentum 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 Small Cap Momentum Fund, you can compare the effects of market volatilities on Valic Company and Small-cap Momentum 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 Small-cap Momentum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valic Company and Small-cap Momentum.
Diversification Opportunities for Valic Company and Small-cap Momentum
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Valic and Small-cap is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Valic Company I and Small Cap Momentum Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Small Cap Momentum 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 Small-cap Momentum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Small Cap Momentum has no effect on the direction of Valic Company i.e., Valic Company and Small-cap Momentum go up and down completely randomly.
Pair Corralation between Valic Company and Small-cap Momentum
If you would invest 1,067 in Valic Company I on August 28, 2024 and sell it today you would earn a total of 321.00 from holding Valic Company I or generate 30.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Valic Company I vs. Small Cap Momentum Fund
Performance |
| Timeline |
| Valic Company I |
| Small Cap Momentum |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Valic Company and Small-cap Momentum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Valic Company and Small-cap Momentum
The main advantage of trading using opposite Valic Company and Small-cap Momentum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valic Company position performs unexpectedly, Small-cap Momentum 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 Small-cap Momentum will offset losses from the drop in Small-cap Momentum's long position.| Valic Company vs. T Rowe Price | Valic Company vs. Pnc Emerging Markets | Valic Company vs. Siit Emerging Markets | Valic Company vs. Pace International Emerging |
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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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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