Correlation Between Valic Company and Floating Rate
Can any of the company-specific risk be diversified away by investing in both Valic Company and Floating Rate 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 Floating Rate 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 Floating Rate Fund, you can compare the effects of market volatilities on Valic Company and Floating Rate 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 Floating Rate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valic Company and Floating Rate.
Diversification Opportunities for Valic Company and Floating Rate
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Valic and Floating is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Valic Company I and Floating Rate Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Floating Rate 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 Floating Rate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Floating Rate has no effect on the direction of Valic Company i.e., Valic Company and Floating Rate go up and down completely randomly.
Pair Corralation between Valic Company and Floating Rate
Assuming the 90 days horizon Valic Company I is expected to generate 8.31 times more return on investment than Floating Rate. However, Valic Company is 8.31 times more volatile than Floating Rate Fund. It trades about 0.19 of its potential returns per unit of risk. Floating Rate Fund is currently generating about 0.25 per unit of risk. If you would invest 1,095 in Valic Company I on May 28, 2025 and sell it today you would earn a total of 154.00 from holding Valic Company I or generate 14.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Valic Company I vs. Floating Rate Fund
Performance |
| Timeline |
| Valic Company I |
| Floating Rate |
Valic Company and Floating Rate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Valic Company and Floating Rate
The main advantage of trading using opposite Valic Company and Floating Rate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valic Company position performs unexpectedly, Floating Rate 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 Floating Rate will offset losses from the drop in Floating Rate's long position.| Valic Company vs. American Century Etf | Valic Company vs. Northern Small Cap | Valic Company vs. Ultrasmall Cap Profund Ultrasmall Cap | Valic Company vs. Small Cap Value Fund |
| Floating Rate vs. Ashmore Emerging Markets | Floating Rate vs. Ep Emerging Markets | Floating Rate vs. Ab Bond Inflation | Floating Rate vs. Rbc Emerging Markets |
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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