Correlation Between Valic Company and Inflation Linked
Can any of the company-specific risk be diversified away by investing in both Valic Company and Inflation Linked 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 Inflation Linked 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 Inflation Linked Fixed Income, you can compare the effects of market volatilities on Valic Company and Inflation Linked 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 Inflation Linked. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valic Company and Inflation Linked.
Diversification Opportunities for Valic Company and Inflation Linked
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Valic and Inflation is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Valic Company I and Inflation Linked Fixed Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inflation Linked Fixed 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 Inflation Linked. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inflation Linked Fixed has no effect on the direction of Valic Company i.e., Valic Company and Inflation Linked go up and down completely randomly.
Pair Corralation between Valic Company and Inflation Linked
Assuming the 90 days horizon Valic Company I is expected to generate 4.01 times more return on investment than Inflation Linked. However, Valic Company is 4.01 times more volatile than Inflation Linked Fixed Income. It trades about 0.18 of its potential returns per unit of risk. Inflation Linked Fixed Income is currently generating about 0.1 per unit of risk. If you would invest 1,055 in Valic Company I on April 25, 2025 and sell it today you would earn a total of 137.00 from holding Valic Company I or generate 12.99% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 98.39% |
Values | Daily Returns |
Valic Company I vs. Inflation Linked Fixed Income
Performance |
Timeline |
Valic Company I |
Inflation Linked Fixed |
Valic Company and Inflation Linked Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Valic Company and Inflation Linked
The main advantage of trading using opposite Valic Company and Inflation Linked positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valic Company position performs unexpectedly, Inflation Linked 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 Inflation Linked will offset losses from the drop in Inflation Linked's long position.Valic Company vs. Blackrock Financial Institutions | Valic Company vs. Davis Financial Fund | Valic Company vs. T Rowe Price | Valic Company vs. Putnam Global Financials |
Inflation Linked vs. T Rowe Price | Inflation Linked vs. Buffalo Growth Fund | Inflation Linked vs. Nova Fund Class | Inflation Linked vs. Tax Managed Large Cap |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
Commodity Directory Find actively traded commodities issued by global exchanges | |
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
Equity Valuation Check real value of public entities based on technical and fundamental data | |
Share Portfolio Track or share privately all of your investments from the convenience of any device | |
Bonds Directory Find actively traded corporate debentures issued by US companies |