Correlation Between Valic Company and Global Strategy
Can any of the company-specific risk be diversified away by investing in both Valic Company and Global Strategy 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 Global Strategy 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 Global Strategy Fund, you can compare the effects of market volatilities on Valic Company and Global Strategy 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 Global Strategy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valic Company and Global Strategy.
Diversification Opportunities for Valic Company and Global Strategy
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Valic and Global is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Valic Company I and Global Strategy Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Strategy 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 Global Strategy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Strategy has no effect on the direction of Valic Company i.e., Valic Company and Global Strategy go up and down completely randomly.
Pair Corralation between Valic Company and Global Strategy
Assuming the 90 days horizon Valic Company I is expected to generate 2.67 times more return on investment than Global Strategy. However, Valic Company is 2.67 times more volatile than Global Strategy Fund. It trades about 0.12 of its potential returns per unit of risk. Global Strategy Fund is currently generating about 0.24 per unit of risk. If you would invest 1,636 in Valic Company I on June 9, 2025 and sell it today you would earn a total of 128.00 from holding Valic Company I or generate 7.82% 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. Global Strategy Fund
Performance |
| Timeline |
| Valic Company I |
| Global Strategy |
Valic Company and Global Strategy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Valic Company and Global Strategy
The main advantage of trading using opposite Valic Company and Global Strategy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valic Company position performs unexpectedly, Global Strategy 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 Global Strategy will offset losses from the drop in Global Strategy's long position.| Valic Company vs. Dreyfusstandish Global Fixed | Valic Company vs. Ab Global Risk | Valic Company vs. Gmo Global Equity | Valic Company vs. Qs Global Equity |
| Global Strategy vs. Mid Cap Index | Global Strategy vs. Mid Cap Strategic | Global Strategy vs. Valic Company I | Global Strategy vs. Valic Company I |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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