Correlation Between Valic Company and Heartland Value
Can any of the company-specific risk be diversified away by investing in both Valic Company and Heartland Value 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 Heartland Value 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 Heartland Value Plus, you can compare the effects of market volatilities on Valic Company and Heartland Value 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 Heartland Value. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valic Company and Heartland Value.
Diversification Opportunities for Valic Company and Heartland Value
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Valic and Heartland is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Valic Company I and Heartland Value Plus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Heartland Value Plus 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 Heartland Value. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Heartland Value Plus has no effect on the direction of Valic Company i.e., Valic Company and Heartland Value go up and down completely randomly.
Pair Corralation between Valic Company and Heartland Value
Assuming the 90 days horizon Valic Company I is expected to generate 1.05 times more return on investment than Heartland Value. However, Valic Company is 1.05 times more volatile than Heartland Value Plus. It trades about 0.24 of its potential returns per unit of risk. Heartland Value Plus is currently generating about 0.2 per unit of risk. If you would invest 1,290 in Valic Company I on August 28, 2024 and sell it today you would earn a total of 111.00 from holding Valic Company I or generate 8.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Valic Company I vs. Heartland Value Plus
Performance |
| Timeline |
| Valic Company I |
| Heartland Value Plus |
Valic Company and Heartland Value Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Valic Company and Heartland Value
The main advantage of trading using opposite Valic Company and Heartland Value positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valic Company position performs unexpectedly, Heartland Value 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 Heartland Value will offset losses from the drop in Heartland Value's long position.| Valic Company vs. Scharf Fund Retail | Valic Company vs. Dodge International Stock | Valic Company vs. Ms Global Fixed | Valic Company vs. Artisan Select Equity |
| Heartland Value vs. Heartland Value Fund | Heartland Value vs. Large Cap Fund | Heartland Value vs. Amg Yacktman Fund | Heartland Value vs. Wasatch Large Cap |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |