Correlation Between Meeder Funds and Western Asset
Can any of the company-specific risk be diversified away by investing in both Meeder Funds and Western Asset 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 Western Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Meeder Funds and Western Asset Inflation, you can compare the effects of market volatilities on Meeder Funds and Western Asset 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 Western Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Meeder Funds and Western Asset.
Diversification Opportunities for Meeder Funds and Western Asset
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Meeder and Western is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Meeder Funds and Western Asset Inflation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Asset Inflation 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 Western Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Asset Inflation has no effect on the direction of Meeder Funds i.e., Meeder Funds and Western Asset go up and down completely randomly.
Pair Corralation between Meeder Funds and Western Asset
Assuming the 90 days horizon Meeder Funds is expected to generate 0.41 times more return on investment than Western Asset. However, Meeder Funds is 2.43 times less risky than Western Asset. It trades about 0.14 of its potential returns per unit of risk. Western Asset Inflation is currently generating about 0.05 per unit of risk. If you would invest 95.00 in Meeder Funds on August 31, 2024 and sell it today you would earn a total of 5.00 from holding Meeder Funds or generate 5.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Meeder Funds vs. Western Asset Inflation
Performance |
| Timeline |
| Meeder Funds |
| Western Asset Inflation |
Meeder Funds and Western Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Meeder Funds and Western Asset
The main advantage of trading using opposite Meeder Funds and Western Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Meeder Funds position performs unexpectedly, Western Asset 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 Western Asset will offset losses from the drop in Western Asset's long position.| Meeder Funds vs. Vanguard Total Stock | Meeder Funds vs. Vanguard 500 Index | Meeder Funds vs. Vanguard Total Stock | Meeder Funds vs. Vanguard Total Stock |
| Western Asset vs. T Rowe Price | Western Asset vs. Lord Abbett Govt | Western Asset vs. Meeder Funds | Western Asset vs. Dreyfus Institutional Reserves |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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