Correlation Between 2 Year and Corn Futures
Can any of the company-specific risk be diversified away by investing in both 2 Year and Corn Futures 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 2 Year and Corn Futures into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 2 Year T Note Futures and Corn Futures, you can compare the effects of market volatilities on 2 Year and Corn Futures 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 2 Year with a short position of Corn Futures. Check out your portfolio center. Please also check ongoing floating volatility patterns of 2 Year and Corn Futures.
Diversification Opportunities for 2 Year and Corn Futures
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ZTUSD and Corn is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding 2 Year T Note Futures and Corn Futures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Corn Futures and 2 Year 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 2 Year T Note Futures are associated (or correlated) with Corn Futures. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Corn Futures has no effect on the direction of 2 Year i.e., 2 Year and Corn Futures go up and down completely randomly.
Pair Corralation between 2 Year and Corn Futures
If you would invest 10,281 in 2 Year T Note Futures on December 28, 2024 and sell it today you would earn a total of 61.00 from holding 2 Year T Note Futures or generate 0.59% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
2 Year T Note Futures vs. Corn Futures
Performance |
Timeline |
2 Year T |
Corn Futures |
2 Year and Corn Futures Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with 2 Year and Corn Futures
The main advantage of trading using opposite 2 Year and Corn Futures positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 2 Year position performs unexpectedly, Corn Futures 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 Corn Futures will offset losses from the drop in Corn Futures' long position.2 Year vs. Live Cattle Futures | 2 Year vs. Silver Futures | 2 Year vs. Corn Futures | 2 Year vs. Lumber Futures |
Corn Futures vs. 30 Year Treasury | Corn Futures vs. Oat Futures | Corn Futures vs. Lean Hogs Futures | Corn Futures vs. Cocoa |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
Performance Analysis Check effects of mean-variance optimization against your current asset allocation |