Correlation Between Meeder Funds and Regional Bank

Can any of the company-specific risk be diversified away by investing in both Meeder Funds and Regional Bank 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 Meeder Funds and Regional Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Meeder Funds and Regional Bank Fund, you can compare the effects of market volatilities on Meeder Funds and Regional Bank 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 Meeder Funds with a short position of Regional Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meeder Funds and Regional Bank.

Diversification Opportunities for Meeder Funds and Regional Bank

0.0

Correlation Coefficient

Meeder Funds  Regional Bank

Pay attention - limited upside

The 3 months correlation between Meeder and Regional is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Meeder Funds and Regional Bank Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Regional Bank and Meeder Funds 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 Meeder Funds are associated (or correlated) with Regional Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Regional Bank has no effect on the direction of Meeder Funds i.e., Meeder Funds and Regional Bank go up and down completely randomly.

Pair Corralation between Meeder Funds and Regional Bank

If you would invest  100.00  in Meeder Funds on November 29, 2024 and sell it today you would earn a total of  0.00  from holding Meeder Funds or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Meeder Funds   vs.  Regional Bank Fund

Meeder Funds

Risk-Adjusted Performance

Very Weak

Over the last 90 days Meeder Funds has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Meeder Funds is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Regional Bank

Risk-Adjusted Performance

Very Weak

Over the last 90 days Regional Bank Fund has generated negative risk-adjusted returns adding no value to fund investors. In spite of weak performance in the last few months, the Fund's basic indicators remain fairly strong which may send shares a bit higher in March 2025. The current disturbance may also be a sign of long term up-swing for the fund investors.

Pair Trading with Meeder Funds and Regional Bank

The main advantage of trading using opposite Meeder Funds and Regional Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meeder Funds position performs unexpectedly, Regional Bank 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 Regional Bank will offset losses from the drop in Regional Bank's long position.

The idea behind Meeder Funds and Regional Bank Fund pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.