Correlation Between Aig Government and Strategic Advisers
Can any of the company-specific risk be diversified away by investing in both Aig Government and Strategic Advisers 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 Aig Government and Strategic Advisers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aig Government Money and Strategic Advisers Income, you can compare the effects of market volatilities on Aig Government and Strategic Advisers 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 Aig Government with a short position of Strategic Advisers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aig Government and Strategic Advisers.
Diversification Opportunities for Aig Government and Strategic Advisers
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Aig and Strategic is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Aig Government Money and Strategic Advisers Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Strategic Advisers Income and Aig Government 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 Aig Government Money are associated (or correlated) with Strategic Advisers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Strategic Advisers Income has no effect on the direction of Aig Government i.e., Aig Government and Strategic Advisers go up and down completely randomly.
Pair Corralation between Aig Government and Strategic Advisers
Assuming the 90 days horizon Aig Government is expected to generate 1.63 times less return on investment than Strategic Advisers. But when comparing it to its historical volatility, Aig Government Money is 1.68 times less risky than Strategic Advisers. It trades about 0.34 of its potential returns per unit of risk. Strategic Advisers Income is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 861.00 in Strategic Advisers Income on May 27, 2025 and sell it today you would earn a total of 30.00 from holding Strategic Advisers Income or generate 3.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aig Government Money vs. Strategic Advisers Income
Performance |
| Timeline |
| Aig Government Money |
| Strategic Advisers Income |
Aig Government and Strategic Advisers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aig Government and Strategic Advisers
The main advantage of trading using opposite Aig Government and Strategic Advisers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aig Government position performs unexpectedly, Strategic Advisers 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 Advisers will offset losses from the drop in Strategic Advisers' long position.| Aig Government vs. Alphacentric Hedged Market | Aig Government vs. Blackrock Emerging Markets | Aig Government vs. Saat Market Growth | Aig Government vs. Fidelity New Markets |
| Strategic Advisers vs. John Hancock Money | Strategic Advisers vs. Hsbc Treasury Money | Strategic Advisers vs. Dws Government Money | Strategic Advisers vs. Edward Jones Money |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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