Correlation Between Aig Government and Icon Information
Can any of the company-specific risk be diversified away by investing in both Aig Government and Icon Information 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 Icon Information 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 Icon Information Technology, you can compare the effects of market volatilities on Aig Government and Icon Information 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 Icon Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aig Government and Icon Information.
Diversification Opportunities for Aig Government and Icon Information
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Aig and Icon is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Aig Government Money and Icon Information Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Icon Information Tec 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 Icon Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Icon Information Tec has no effect on the direction of Aig Government i.e., Aig Government and Icon Information go up and down completely randomly.
Pair Corralation between Aig Government and Icon Information
Assuming the 90 days horizon Aig Government is expected to generate 5.35 times less return on investment than Icon Information. But when comparing it to its historical volatility, Aig Government Money is 5.2 times less risky than Icon Information. It trades about 0.05 of its potential returns per unit of risk. Icon Information Technology is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,294 in Icon Information Technology on June 5, 2025 and sell it today you would earn a total of 407.00 from holding Icon Information Technology or generate 31.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aig Government Money vs. Icon Information Technology
Performance |
| Timeline |
| Aig Government Money |
| Icon Information Tec |
Aig Government and Icon Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aig Government and Icon Information
The main advantage of trading using opposite Aig Government and Icon Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aig Government position performs unexpectedly, Icon Information 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 Icon Information will offset losses from the drop in Icon Information's long position.| Aig Government vs. Simt Multi Asset Accumulation | Aig Government vs. Saat Market Growth | Aig Government vs. Simt Real Return | Aig Government vs. Simt Small Cap |
| Icon Information vs. Yuanbao American Depositary | Icon Information vs. Viewbix Common Stock | Icon Information vs. Datavault AI | Icon Information vs. VivoPower International PLC |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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