Correlation Between General Money and Transamerica Asset
Can any of the company-specific risk be diversified away by investing in both General Money and Transamerica 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 General Money and Transamerica Asset 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 Transamerica Asset Allocation, you can compare the effects of market volatilities on General Money and Transamerica 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 General Money with a short position of Transamerica Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of General Money and Transamerica Asset.
Diversification Opportunities for General Money and Transamerica Asset
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between General and Transamerica is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding General Money Market and Transamerica Asset Allocation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Transamerica Asset 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 Transamerica Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Transamerica Asset has no effect on the direction of General Money i.e., General Money and Transamerica Asset go up and down completely randomly.
Pair Corralation between General Money and Transamerica Asset
If you would invest (100.00) in Transamerica Asset Allocation on September 5, 2024 and sell it today you would earn a total of 100.00 from holding Transamerica Asset Allocation or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
General Money Market vs. Transamerica Asset Allocation
Performance |
| Timeline |
| General Money Market |
| Transamerica Asset |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
General Money and Transamerica Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with General Money and Transamerica Asset
The main advantage of trading using opposite General Money and Transamerica Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if General Money position performs unexpectedly, Transamerica 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 Transamerica Asset will offset losses from the drop in Transamerica Asset's long position.| General Money vs. Ab Global Bond | General Money vs. Qs Global Equity | General Money vs. Mirova Global Green | General Money vs. Artisan Global Unconstrained |
| Transamerica Asset vs. Touchstone Small Cap | Transamerica Asset vs. Kinetics Small Cap | Transamerica Asset vs. Ab Small Cap | Transamerica Asset vs. Baird Smallmid Cap |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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