Correlation Between Valic Company and Aquila Three

Can any of the company-specific risk be diversified away by investing in both Valic Company and Aquila Three 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 Aquila Three 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 Aquila Three Peaks, you can compare the effects of market volatilities on Valic Company and Aquila Three 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 Aquila Three. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valic Company and Aquila Three.

Diversification Opportunities for Valic Company and Aquila Three

0.87

Correlation Coefficient

Valic Company  Aquila Three

Very poor diversification

The 3 months correlation between Valic and Aquila is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Valic Company I and Aquila Three Peaks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aquila Three Peaks 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 Aquila Three. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aquila Three Peaks has no effect on the direction of Valic Company i.e., Valic Company and Aquila Three go up and down completely randomly.

Pair Corralation between Valic Company and Aquila Three

Assuming the 90 days horizon Valic Company I is expected to generate 7.43 times more return on investment than Aquila Three. However, Valic Company is 7.43 times more volatile than Aquila Three Peaks. It trades about 0.06 of its potential returns per unit of risk. Aquila Three Peaks is currently generating about 0.2 per unit of risk. If you would invest  1,126  in Valic Company I on May 13, 2025 and sell it today you would earn a total of  42.00  from holding Valic Company I or generate 3.73% 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.  Aquila Three Peaks

Valic Company I

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Valic Company I are ranked lower than 4 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong fundamental indicators, Valic Company is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Aquila Three Peaks

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Aquila Three Peaks are ranked lower than 16 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Aquila Three is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Valic Company and Aquila Three

The main advantage of trading using opposite Valic Company and Aquila Three positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valic Company position performs unexpectedly, Aquila Three 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 Aquila Three will offset losses from the drop in Aquila Three's long position.

The idea behind Valic Company I and Aquila Three Peaks pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.