Correlation Between Aig Government and Ppm High
Can any of the company-specific risk be diversified away by investing in both Aig Government and Ppm High 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 Ppm High 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 Ppm High Yield, you can compare the effects of market volatilities on Aig Government and Ppm High 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 Ppm High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aig Government and Ppm High.
Diversification Opportunities for Aig Government and Ppm High
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aig and Ppm is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Aig Government Money and Ppm High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ppm High Yield 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 Ppm High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ppm High Yield has no effect on the direction of Aig Government i.e., Aig Government and Ppm High go up and down completely randomly.
Pair Corralation between Aig Government and Ppm High
If you would invest 1,014 in Aig Government Money on December 3, 2024 and sell it today you would earn a total of 0.00 from holding Aig Government Money or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 63.33% |
Values | Daily Returns |
Aig Government Money vs. Ppm High Yield
Performance |
Timeline |
Aig Government Money |
Ppm High Yield |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Aig Government and Ppm High Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Aig Government and Ppm High
The main advantage of trading using opposite Aig Government and Ppm High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aig Government position performs unexpectedly, Ppm High 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 Ppm High will offset losses from the drop in Ppm High's long position.Aig Government vs. Mesirow Financial High | Aig Government vs. Access Flex High | Aig Government vs. Gmo High Yield | Aig Government vs. Transamerica High Yield |
Ppm High vs. Rational Dividend Capture | Ppm High vs. Fzdaqx | Ppm High vs. Aam Select Income | Ppm High vs. Fuhkbx |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
Transaction History View history of all your transactions and understand their impact on performance | |
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |