Correlation Between Cref Money and Matson Money
Can any of the company-specific risk be diversified away by investing in both Cref Money and Matson Money 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 Money and Matson Money into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cref Money Market and Matson Money Equity, you can compare the effects of market volatilities on Cref Money and Matson Money 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 Money with a short position of Matson Money. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cref Money and Matson Money.
Diversification Opportunities for Cref Money and Matson Money
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Cref and Matson is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Cref Money Market and Matson Money Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Matson Money Equity and Cref 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 Cref Money Market are associated (or correlated) with Matson Money. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Matson Money Equity has no effect on the direction of Cref Money i.e., Cref Money and Matson Money go up and down completely randomly.
Pair Corralation between Cref Money and Matson Money
Assuming the 90 days trading horizon Cref Money is expected to generate 12.94 times less return on investment than Matson Money. But when comparing it to its historical volatility, Cref Money Market is 57.89 times less risky than Matson Money. It trades about 1.01 of its potential returns per unit of risk. Matson Money Equity is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 2,863 in Matson Money Equity on April 23, 2025 and sell it today you would earn a total of 394.00 from holding Matson Money Equity or generate 13.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cref Money Market vs. Matson Money Equity
Performance |
| Timeline |
| Cref Money Market |
| Matson Money Equity |
Cref Money and Matson Money Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cref Money and Matson Money
The main advantage of trading using opposite Cref Money and Matson Money positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cref Money position performs unexpectedly, Matson Money 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 Matson Money will offset losses from the drop in Matson Money's long position.| Cref Money vs. Rbc Global Equity | Cref Money vs. Investec Global Franchise | Cref Money vs. Dodge Global Stock | Cref Money vs. Morningstar Global Income |
| Matson Money vs. Artisan High Income | Matson Money vs. Enhanced Fixed Income | Matson Money vs. Touchstone Premium Yield | Matson Money vs. Ambrus Core Bond |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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