Correlation Between Inflation Linked and Cref Money
Can any of the company-specific risk be diversified away by investing in both Inflation Linked and Cref 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 Inflation Linked and Cref Money into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inflation Linked Fixed Income and Cref Money Market, you can compare the effects of market volatilities on Inflation Linked and Cref 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 Inflation Linked with a short position of Cref Money. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inflation Linked and Cref Money.
Diversification Opportunities for Inflation Linked and Cref Money
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Inflation and Cref is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Inflation Linked Fixed Income and Cref Money Market in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cref Money Market and Inflation Linked 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 Inflation Linked Fixed Income are associated (or correlated) with Cref Money. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cref Money Market has no effect on the direction of Inflation Linked i.e., Inflation Linked and Cref Money go up and down completely randomly.
Pair Corralation between Inflation Linked and Cref Money
Assuming the 90 days horizon Inflation Linked Fixed Income is expected to generate 13.34 times more return on investment than Cref Money. However, Inflation Linked is 13.34 times more volatile than Cref Money Market. It trades about 0.18 of its potential returns per unit of risk. Cref Money Market is currently generating about 0.89 per unit of risk. If you would invest 827.00 in Inflation Linked Fixed Income on July 21, 2025 and sell it today you would earn a total of 22.00 from holding Inflation Linked Fixed Income or generate 2.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inflation Linked Fixed Income vs. Cref Money Market
Performance |
| Timeline |
| Inflation Linked Fixed |
| Cref Money Market |
Inflation Linked and Cref Money Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inflation Linked and Cref Money
The main advantage of trading using opposite Inflation Linked and Cref Money positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inflation Linked position performs unexpectedly, Cref 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 Cref Money will offset losses from the drop in Cref Money's long position.| Inflation Linked vs. Cref Money Market | Inflation Linked vs. Ab Government Exchange | Inflation Linked vs. Voya Government Money | Inflation Linked vs. Blackrock Exchange Portfolio |
| Cref Money vs. Dws Equity Sector | Cref Money vs. Balanced Fund Retail | Cref Money vs. T Rowe Price | Cref Money vs. Pace International Equity |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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