Correlation Between Aig Government and Voya Global
Can any of the company-specific risk be diversified away by investing in both Aig Government and Voya Global 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 Voya Global 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 Voya Global Perspectives, you can compare the effects of market volatilities on Aig Government and Voya Global 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 Voya Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aig Government and Voya Global.
Diversification Opportunities for Aig Government and Voya Global
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Aig and Voya is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Aig Government Money and Voya Global Perspectives in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Global Perspectives 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 Voya Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Global Perspectives has no effect on the direction of Aig Government i.e., Aig Government and Voya Global go up and down completely randomly.
Pair Corralation between Aig Government and Voya Global
Assuming the 90 days horizon Aig Government Money is expected to generate 0.38 times more return on investment than Voya Global. However, Aig Government Money is 2.63 times less risky than Voya Global. It trades about 0.17 of its potential returns per unit of risk. Voya Global Perspectives is currently generating about -0.03 per unit of risk. If you would invest 1,008 in Aig Government Money on December 2, 2024 and sell it today you would earn a total of 6.00 from holding Aig Government Money or generate 0.6% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Aig Government Money vs. Voya Global Perspectives
Performance |
Timeline |
Aig Government Money |
Voya Global Perspectives |
Aig Government and Voya Global Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Aig Government and Voya Global
The main advantage of trading using opposite Aig Government and Voya Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aig Government position performs unexpectedly, Voya Global 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 Voya Global will offset losses from the drop in Voya Global's long position.Aig Government vs. Franklin Natural Resources | Aig Government vs. Transamerica Mlp Energy | Aig Government vs. Short Oil Gas | Aig Government vs. Franklin Natural Resources |
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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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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