Correlation Between Cref Inflation and Schwab Global
Can any of the company-specific risk be diversified away by investing in both Cref Inflation and Schwab Global 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 Cref Inflation and Schwab Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cref Inflation Linked Bond and Schwab Global Real, you can compare the effects of market volatilities on Cref Inflation and Schwab Global 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 Cref Inflation with a short position of Schwab Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cref Inflation and Schwab Global.
Diversification Opportunities for Cref Inflation and Schwab Global
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cref and Schwab is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Cref Inflation Linked Bond and Schwab Global Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Schwab Global Real and Cref Inflation 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 Cref Inflation Linked Bond are associated (or correlated) with Schwab Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Schwab Global Real has no effect on the direction of Cref Inflation i.e., Cref Inflation and Schwab Global go up and down completely randomly.
Pair Corralation between Cref Inflation and Schwab Global
Assuming the 90 days trading horizon Cref Inflation Linked Bond is expected to under-perform the Schwab Global. But the fund apears to be less risky and, when comparing its historical volatility, Cref Inflation Linked Bond is 5.05 times less risky than Schwab Global. The fund trades about -0.01 of its potential returns per unit of risk. The Schwab Global Real is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 673.00 in Schwab Global Real on September 7, 2025 and sell it today you would earn a total of 2.00 from holding Schwab Global Real or generate 0.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cref Inflation Linked Bond vs. Schwab Global Real
Performance |
| Timeline |
| Cref Inflation Linked |
| Schwab Global Real |
Cref Inflation and Schwab Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cref Inflation and Schwab Global
The main advantage of trading using opposite Cref Inflation and Schwab Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cref Inflation position performs unexpectedly, Schwab Global 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 Schwab Global will offset losses from the drop in Schwab Global's long position.| Cref Inflation vs. Vanguard Total Stock | Cref Inflation vs. Vanguard 500 Index | Cref Inflation vs. Vanguard Total Stock | Cref Inflation vs. Vanguard Total Stock |
| Schwab Global vs. Ab Municipal Bond | Schwab Global vs. Cref Inflation Linked Bond | Schwab Global vs. The Hartford Inflation | Schwab Global vs. The Hartford Inflation |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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