Correlation Between General Money and Strategic Asset
Can any of the company-specific risk be diversified away by investing in both General Money and Strategic 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 Strategic 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 Strategic Asset Management, you can compare the effects of market volatilities on General Money and Strategic 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 Strategic Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of General Money and Strategic Asset.
Diversification Opportunities for General Money and Strategic Asset
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between General and Strategic is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding General Money Market and Strategic Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Strategic Asset Mana 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 Strategic Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Strategic Asset Mana has no effect on the direction of General Money i.e., General Money and Strategic Asset go up and down completely randomly.
Pair Corralation between General Money and Strategic Asset
If you would invest 2,010 in Strategic Asset Management on September 13, 2024 and sell it today you would earn a total of 26.00 from holding Strategic Asset Management or generate 1.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
General Money Market vs. Strategic Asset Management
Performance |
| Timeline |
| General Money Market |
| Strategic Asset Mana |
General Money and Strategic Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with General Money and Strategic Asset
The main advantage of trading using opposite General Money and Strategic Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if General Money position performs unexpectedly, Strategic 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 Strategic Asset will offset losses from the drop in Strategic Asset'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 |
| Strategic Asset vs. Clearbridge Energy Mlp | Strategic Asset vs. Gamco Natural Resources | Strategic Asset vs. Firsthand Alternative Energy | Strategic Asset vs. World Energy 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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