Correlation Between Matson Money and Money Market
Can any of the company-specific risk be diversified away by investing in both Matson Money and Money Market 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 Matson Money and Money Market into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Matson Money Equity and Money Market Obligations, you can compare the effects of market volatilities on Matson Money and Money Market 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 Matson Money with a short position of Money Market. Check out your portfolio center. Please also check ongoing floating volatility patterns of Matson Money and Money Market.
Diversification Opportunities for Matson Money and Money Market
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Matson and Money is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Matson Money Equity and Money Market Obligations in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Money Market Obligations and Matson 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 Matson Money Equity are associated (or correlated) with Money Market. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Money Market Obligations has no effect on the direction of Matson Money i.e., Matson Money and Money Market go up and down completely randomly.
Pair Corralation between Matson Money and Money Market
Assuming the 90 days horizon Matson Money Equity is expected to generate 6.84 times more return on investment than Money Market. However, Matson Money is 6.84 times more volatile than Money Market Obligations. It trades about 0.1 of its potential returns per unit of risk. Money Market Obligations is currently generating about 0.14 per unit of risk. If you would invest 2,881 in Matson Money Equity on September 14, 2024 and sell it today you would earn a total of 790.00 from holding Matson Money Equity or generate 27.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Matson Money Equity vs. Money Market Obligations
Performance |
| Timeline |
| Matson Money Equity |
| Money Market Obligations |
Matson Money and Money Market Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Matson Money and Money Market
The main advantage of trading using opposite Matson Money and Money Market positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Matson Money position performs unexpectedly, Money Market 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 Money Market will offset losses from the drop in Money Market's long position.| Matson Money vs. Fidelity Managed Retirement | Matson Money vs. Jpmorgan Smartretirement 2035 | Matson Money vs. Pro Blend Moderate Term | Matson Money vs. Putnman Retirement Ready |
| Money Market vs. Vanguard Total Stock | Money Market vs. Vanguard 500 Index | Money Market vs. Vanguard Total Stock | Money Market vs. Vanguard Total Stock |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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