Correlation Between Cref Money and Retirement Living

Can any of the company-specific risk be diversified away by investing in both Cref Money and Retirement Living 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 Retirement Living 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 Retirement Living Through, you can compare the effects of market volatilities on Cref Money and Retirement Living 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 Retirement Living. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cref Money and Retirement Living.

Diversification Opportunities for Cref Money and Retirement Living

-0.13

Correlation Coefficient

Cref Money  Retirement Living

Good diversification

The 3 months correlation between Cref and Retirement is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Cref Money Market and Retirement Living Through in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Retirement Living Through 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 Retirement Living. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Retirement Living Through has no effect on the direction of Cref Money i.e., Cref Money and Retirement Living go up and down completely randomly.

Pair Corralation between Cref Money and Retirement Living

Assuming the 90 days trading horizon Cref Money is expected to generate 2.53 times less return on investment than Retirement Living. But when comparing it to its historical volatility, Cref Money Market is 28.52 times less risky than Retirement Living. It trades about 0.8 of its potential returns per unit of risk. Retirement Living Through is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  1,139  in Retirement Living Through on October 23, 2024 and sell it today you would earn a total of  309.00  from holding Retirement Living Through or generate 27.13% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	97.17%
Values	Daily Returns

Cref Money Market  vs.  Retirement Living Through

Cref Money Market

Risk-Adjusted Performance

83 of 100

Market Crasher

Compared to the overall equity markets, risk-adjusted returns on investments in Cref Money Market are ranked lower than 83 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong primary indicators, Cref Money is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Retirement Living Through

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Retirement Living Through are ranked lower than 2 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Retirement Living is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Cref Money and Retirement Living

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

The idea behind Cref Money Market and Retirement Living Through 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.

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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.