Correlation Between Aig Government and Tiaa-cref Emerging
Can any of the company-specific risk be diversified away by investing in both Aig Government and Tiaa-cref Emerging 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 Tiaa-cref Emerging 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 Tiaa Cref Emerging Markets, you can compare the effects of market volatilities on Aig Government and Tiaa-cref Emerging 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 Tiaa-cref Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aig Government and Tiaa-cref Emerging.
Diversification Opportunities for Aig Government and Tiaa-cref Emerging
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Aig and Tiaa-cref is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Aig Government Money and Tiaa Cref Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tiaa Cref Emerging 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 Tiaa-cref Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tiaa Cref Emerging has no effect on the direction of Aig Government i.e., Aig Government and Tiaa-cref Emerging go up and down completely randomly.
Pair Corralation between Aig Government and Tiaa-cref Emerging
Assuming the 90 days horizon Aig Government is expected to generate 5.28 times less return on investment than Tiaa-cref Emerging. But when comparing it to its historical volatility, Aig Government Money is 2.08 times less risky than Tiaa-cref Emerging. It trades about 0.18 of its potential returns per unit of risk. Tiaa Cref Emerging Markets is currently generating about 0.45 of returns per unit of risk over similar time horizon. If you would invest 887.00 in Tiaa Cref Emerging Markets on June 2, 2025 and sell it today you would earn a total of 14.00 from holding Tiaa Cref Emerging Markets or generate 1.58% 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. Tiaa Cref Emerging Markets
Performance |
| Timeline |
| Aig Government Money |
| Tiaa Cref Emerging |
Aig Government and Tiaa-cref Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aig Government and Tiaa-cref Emerging
The main advantage of trading using opposite Aig Government and Tiaa-cref Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aig Government position performs unexpectedly, Tiaa-cref Emerging 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 Tiaa-cref Emerging will offset losses from the drop in Tiaa-cref Emerging's long position.| Aig Government vs. Vanguard Information Technology | Aig Government vs. Pgim Jennison Technology | Aig Government vs. Red Oak Technology | Aig Government vs. Global Technology Portfolio |
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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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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