Correlation Between Aig Government and Hsbc Treasury

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Can any of the company-specific risk be diversified away by investing in both Aig Government and Hsbc Treasury 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 Hsbc Treasury 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 Hsbc Treasury Money, you can compare the effects of market volatilities on Aig Government and Hsbc Treasury 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 Hsbc Treasury. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aig Government and Hsbc Treasury.

Diversification Opportunities for Aig Government and Hsbc Treasury

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Aig and Hsbc is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Aig Government Money and Hsbc Treasury Money in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hsbc Treasury Money 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 Hsbc Treasury. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hsbc Treasury Money has no effect on the direction of Aig Government i.e., Aig Government and Hsbc Treasury go up and down completely randomly.

Pair Corralation between Aig Government and Hsbc Treasury

If you would invest  976.00  in Aig Government Money on August 28, 2025 and sell it today you would earn a total of  53.00  from holding Aig Government Money or generate 5.43% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy83.6%
ValuesDaily Returns

Aig Government Money  vs.  Hsbc Treasury Money

 Performance 
       Timeline  
Aig Government Money 

Risk-Adjusted Performance

Solid

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Aig Government Money are ranked lower than 25 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Aig Government is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
Hsbc Treasury Money 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Hsbc Treasury Money has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Hsbc Treasury is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Aig Government and Hsbc Treasury Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Aig Government and Hsbc Treasury

The main advantage of trading using opposite Aig Government and Hsbc Treasury positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aig Government position performs unexpectedly, Hsbc Treasury 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 Hsbc Treasury will offset losses from the drop in Hsbc Treasury's long position.
The idea behind Aig Government Money and Hsbc Treasury Money pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.

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