Correlation Between General Money and Smead Value
Can any of the company-specific risk be diversified away by investing in both General Money and Smead Value 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 Smead Value 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 Smead Value Fund, you can compare the effects of market volatilities on General Money and Smead Value 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 Smead Value. Check out your portfolio center. Please also check ongoing floating volatility patterns of General Money and Smead Value.
Diversification Opportunities for General Money and Smead Value
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between General and Smead is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding General Money Market and Smead Value Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Smead Value Fund 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 Smead Value. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Smead Value Fund has no effect on the direction of General Money i.e., General Money and Smead Value go up and down completely randomly.
Pair Corralation between General Money and Smead Value
If you would invest 92.00 in General Money Market on September 12, 2024 and sell it today you would earn a total of 8.00 from holding General Money Market or generate 8.7% 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. Smead Value Fund
Performance |
| Timeline |
| General Money Market |
| Smead Value Fund |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
General Money and Smead Value Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with General Money and Smead Value
The main advantage of trading using opposite General Money and Smead Value positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if General Money position performs unexpectedly, Smead Value 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 Smead Value will offset losses from the drop in Smead Value's long position.| General Money vs. T Rowe Price | General Money vs. Multisector Bond Sma | General Money vs. Ambrus Core Bond | General Money vs. Blrc Sgy Mnp |
| Smead Value vs. Mesirow Financial Small | Smead Value vs. Davis Financial Fund | Smead Value vs. Prudential Jennison Financial | Smead Value vs. Fidelity Advisor Financial |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |