Correlation Between General Money and Bts Managed
Can any of the company-specific risk be diversified away by investing in both General Money and Bts Managed 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 General Money and Bts Managed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between General Money Market and Bts Managed Income, you can compare the effects of market volatilities on General Money and Bts Managed 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 General Money with a short position of Bts Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of General Money and Bts Managed.
Diversification Opportunities for General Money and Bts Managed
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between General and Bts is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding General Money Market and Bts Managed Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bts Managed Income and General 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 General Money Market are associated (or correlated) with Bts Managed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bts Managed Income has no effect on the direction of General Money i.e., General Money and Bts Managed go up and down completely randomly.
Pair Corralation between General Money and Bts Managed
If you would invest 955.00 in Bts Managed Income on December 28, 2024 and sell it today you would earn a total of 6.00 from holding Bts Managed Income or generate 0.63% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 95.24% |
Values | Daily Returns |
General Money Market vs. Bts Managed Income
Performance |
Timeline |
General Money Market |
Bts Managed Income |
General Money and Bts Managed Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with General Money and Bts Managed
The main advantage of trading using opposite General Money and Bts Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if General Money position performs unexpectedly, Bts Managed 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 Bts Managed will offset losses from the drop in Bts Managed's long position.General Money vs. Calvert Conservative Allocation | General Money vs. Massmutual Select Diversified | General Money vs. Pgim Conservative Retirement | General Money vs. Tax Free Conservative Income |
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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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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