Correlation Between Valic Company and Growth Income
Can any of the company-specific risk be diversified away by investing in both Valic Company and Growth Income 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 Valic Company and Growth Income into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Valic Company I and Growth Income Fund, you can compare the effects of market volatilities on Valic Company and Growth Income 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 Valic Company with a short position of Growth Income. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valic Company and Growth Income.
Diversification Opportunities for Valic Company and Growth Income
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Valic and Growth is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Valic Company I and Growth Income Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Growth Income and Valic Company 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 Valic Company I are associated (or correlated) with Growth Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Growth Income has no effect on the direction of Valic Company i.e., Valic Company and Growth Income go up and down completely randomly.
Pair Corralation between Valic Company and Growth Income
Assuming the 90 days horizon Valic Company is expected to generate 2.12 times less return on investment than Growth Income. But when comparing it to its historical volatility, Valic Company I is 4.91 times less risky than Growth Income. It trades about 0.44 of its potential returns per unit of risk. Growth Income Fund is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 3,294 in Growth Income Fund on June 6, 2025 and sell it today you would earn a total of 251.00 from holding Growth Income Fund or generate 7.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Valic Company I vs. Growth Income Fund
Performance |
| Timeline |
| Valic Company I |
| Growth Income |
Valic Company and Growth Income Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Valic Company and Growth Income
The main advantage of trading using opposite Valic Company and Growth Income positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valic Company position performs unexpectedly, Growth Income 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 Growth Income will offset losses from the drop in Growth Income's long position.| Valic Company vs. Siit Emerging Markets | Valic Company vs. Balanced Strategy Fund | Valic Company vs. Rbc Emerging Markets | Valic Company vs. Ep Emerging Markets |
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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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