Correlation Between General Money and Meridian Equity
Can any of the company-specific risk be diversified away by investing in both General Money and Meridian Equity 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 Meridian Equity 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 Meridian Equity Income, you can compare the effects of market volatilities on General Money and Meridian Equity 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 Meridian Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of General Money and Meridian Equity.
Diversification Opportunities for General Money and Meridian Equity
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between General and Meridian is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding General Money Market and Meridian Equity Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Meridian Equity Income 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 Meridian Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Meridian Equity Income has no effect on the direction of General Money i.e., General Money and Meridian Equity go up and down completely randomly.
Pair Corralation between General Money and Meridian Equity
If you would invest 1,310 in Meridian Equity Income on October 21, 2024 and sell it today you would earn a total of 23.00 from holding Meridian Equity Income or generate 1.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
General Money Market vs. Meridian Equity Income
Performance |
| Timeline |
| General Money Market |
| Meridian Equity Income |
General Money and Meridian Equity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with General Money and Meridian Equity
The main advantage of trading using opposite General Money and Meridian Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if General Money position performs unexpectedly, Meridian Equity 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 Meridian Equity will offset losses from the drop in Meridian Equity's long position.| General Money vs. Dws Government Money | General Money vs. Blrc Sgy Mnp | General Money vs. Pioneer Amt Free Municipal | General Money vs. Dunham Porategovernment Bond |
| Meridian Equity vs. Meridian Equity Income | Meridian Equity vs. Meridian Growth Fund | Meridian Equity vs. Meridian Equity Income | Meridian Equity vs. Meridian Growth Fund |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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