Correlation Between Matson Money and Aggressive Investors
Can any of the company-specific risk be diversified away by investing in both Matson Money and Aggressive Investors 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 Matson Money and Aggressive Investors into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Matson Money Equity and Aggressive Investors 1, you can compare the effects of market volatilities on Matson Money and Aggressive Investors 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 Matson Money with a short position of Aggressive Investors. Check out your portfolio center. Please also check ongoing floating volatility patterns of Matson Money and Aggressive Investors.
Diversification Opportunities for Matson Money and Aggressive Investors
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Matson and Aggressive is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Matson Money Equity and Aggressive Investors 1 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aggressive Investors and Matson Money 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 Matson Money Equity are associated (or correlated) with Aggressive Investors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aggressive Investors has no effect on the direction of Matson Money i.e., Matson Money and Aggressive Investors go up and down completely randomly.
Pair Corralation between Matson Money and Aggressive Investors
Assuming the 90 days horizon Matson Money Equity is expected to generate 1.32 times more return on investment than Aggressive Investors. However, Matson Money is 1.32 times more volatile than Aggressive Investors 1. It trades about 0.15 of its potential returns per unit of risk. Aggressive Investors 1 is currently generating about 0.19 per unit of risk. If you would invest 3,143 in Matson Money Equity on June 12, 2025 and sell it today you would earn a total of 268.00 from holding Matson Money Equity or generate 8.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 98.39% |
| Values | Daily Returns |
Matson Money Equity vs. Aggressive Investors 1
Performance |
| Timeline |
| Matson Money Equity |
| Aggressive Investors |
Matson Money and Aggressive Investors Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Matson Money and Aggressive Investors
The main advantage of trading using opposite Matson Money and Aggressive Investors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Matson Money position performs unexpectedly, Aggressive Investors 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 Aggressive Investors will offset losses from the drop in Aggressive Investors' long position.| Matson Money vs. Old Westbury Fixed | Matson Money vs. Ab Bond Inflation | Matson Money vs. Artisan High Income | Matson Money vs. Bbh Intermediate Municipal |
| Aggressive Investors vs. Sp Smallcap 600 | Aggressive Investors vs. Eagle Growth Income | Aggressive Investors vs. Aqr Small Cap | Aggressive Investors vs. Touchstone Small 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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