Correlation Between Mutual Of and Green Dot
Can any of the company-specific risk be diversified away by investing in both Mutual Of and Green Dot 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 Mutual Of and Green Dot into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mutual Of America and Green Dot, you can compare the effects of market volatilities on Mutual Of and Green Dot 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 Mutual Of with a short position of Green Dot. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mutual Of and Green Dot.
Diversification Opportunities for Mutual Of and Green Dot
Average diversification
The 3 months correlation between Mutual and Green is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Mutual Of America and Green Dot in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Green Dot and Mutual Of 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 Mutual Of America are associated (or correlated) with Green Dot. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Green Dot has no effect on the direction of Mutual Of i.e., Mutual Of and Green Dot go up and down completely randomly.
Pair Corralation between Mutual Of and Green Dot
Assuming the 90 days horizon Mutual Of America is expected to generate 0.09 times more return on investment than Green Dot. However, Mutual Of America is 11.57 times less risky than Green Dot. It trades about 0.03 of its potential returns per unit of risk. Green Dot is currently generating about -0.05 per unit of risk. If you would invest 1,400 in Mutual Of America on August 23, 2024 and sell it today you would earn a total of 4.00 from holding Mutual Of America or generate 0.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mutual Of America vs. Green Dot
Performance |
| Timeline |
| Mutual Of America |
| Green Dot |
Mutual Of and Green Dot Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mutual Of and Green Dot
The main advantage of trading using opposite Mutual Of and Green Dot positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mutual Of position performs unexpectedly, Green Dot 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 Green Dot will offset losses from the drop in Green Dot's long position.| Mutual Of vs. Vanguard Target Retirement | Mutual Of vs. ABIVAX Socit Anonyme | Mutual Of vs. SCOR PK | Mutual Of vs. HUMANA INC |
| Green Dot vs. Small Cap Core | Green Dot vs. Morningstar Unconstrained Allocation | Green Dot vs. Mutual Of America | Green Dot vs. Ep Emerging Markets |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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