Correlation Between General Money and Jensen Quality
Can any of the company-specific risk be diversified away by investing in both General Money and Jensen Quality 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 Jensen Quality 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 Jensen Quality Value, you can compare the effects of market volatilities on General Money and Jensen Quality 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 Jensen Quality. Check out your portfolio center. Please also check ongoing floating volatility patterns of General Money and Jensen Quality.
Diversification Opportunities for General Money and Jensen Quality
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between General and Jensen is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding General Money Market and Jensen Quality Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jensen Quality Value 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 Jensen Quality. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jensen Quality Value has no effect on the direction of General Money i.e., General Money and Jensen Quality go up and down completely randomly.
Pair Corralation between General Money and Jensen Quality
If you would invest 100.00 in General Money Market on September 13, 2024 and sell it today you would earn a total of 0.00 from holding General Money Market or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
General Money Market vs. Jensen Quality Value
Performance |
| Timeline |
| General Money Market |
| Jensen Quality Value |
General Money and Jensen Quality Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with General Money and Jensen Quality
The main advantage of trading using opposite General Money and Jensen Quality positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if General Money position performs unexpectedly, Jensen Quality 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 Jensen Quality will offset losses from the drop in Jensen Quality's long position.| General Money vs. Putnam Money Market | General Money vs. Cref Money Market | General Money vs. Ab Government Exchange | General Money vs. Money Market Obligations |
| Jensen Quality vs. Blackrock Health Sciences | Jensen Quality vs. Baillie Gifford Health | Jensen Quality vs. Alger Health Sciences | Jensen Quality vs. Live Oak Health |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |