Correlation Between National Security and American International
Can any of the company-specific risk be diversified away by investing in both National Security and American International 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 National Security and American International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between National Security Group and American International Group, you can compare the effects of market volatilities on National Security and American International 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 National Security with a short position of American International. Check out your portfolio center. Please also check ongoing floating volatility patterns of National Security and American International.
Diversification Opportunities for National Security and American International
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between National and American is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding National Security Group and American International Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American International and National Security 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 National Security Group are associated (or correlated) with American International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American International has no effect on the direction of National Security i.e., National Security and American International go up and down completely randomly.
Pair Corralation between National Security and American International
If you would invest 6,743 in American International Group on December 29, 2023 and sell it today you would earn a total of 1,074 from holding American International Group or generate 15.93% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 1.61% |
Values | Daily Returns |
National Security Group vs. American International Group
Performance |
Timeline |
National Security |
Risk-Adjusted Performance
0 of 100
Low | High |
Very Weak
American International |
National Security and American International Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with National Security and American International
The main advantage of trading using opposite National Security and American International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National Security position performs unexpectedly, American International 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 American International will offset losses from the drop in American International's long position.National Security vs. Dow Inc | National Security vs. Alto Ingredients | National Security vs. Sealed Air | National Security vs. Hawkins |
American International vs. Sweetgreen | American International vs. Topbuild Corp | American International vs. Skyline | American International vs. Oasis Hotel Resort |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |