Correlation Between Aig Government and All Asset
Can any of the company-specific risk be diversified away by investing in both Aig Government and All Asset 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 All Asset 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 All Asset Fund, you can compare the effects of market volatilities on Aig Government and All Asset 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 All Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aig Government and All Asset.
Diversification Opportunities for Aig Government and All Asset
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Aig and All is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Aig Government Money and All Asset Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on All Asset Fund 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 All Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of All Asset Fund has no effect on the direction of Aig Government i.e., Aig Government and All Asset go up and down completely randomly.
Pair Corralation between Aig Government and All Asset
Assuming the 90 days horizon Aig Government is expected to generate 2.28 times less return on investment than All Asset. But when comparing it to its historical volatility, Aig Government Money is 3.44 times less risky than All Asset. It trades about 0.34 of its potential returns per unit of risk. All Asset Fund is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 1,102 in All Asset Fund on June 9, 2025 and sell it today you would earn a total of 56.00 from holding All Asset Fund or generate 5.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aig Government Money vs. All Asset Fund
Performance |
| Timeline |
| Aig Government Money |
| All Asset Fund |
Aig Government and All Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aig Government and All Asset
The main advantage of trading using opposite Aig Government and All Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aig Government position performs unexpectedly, All Asset 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 All Asset will offset losses from the drop in All Asset'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 |
| All Asset vs. Legg Mason Bw | All Asset vs. Principal Lifetime Hybrid | All Asset vs. Columbia Diversified Equity | All Asset vs. Massmutual Premier Diversified |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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