Correlation Between College Retirement and Access Flex
Can any of the company-specific risk be diversified away by investing in both College Retirement and Access Flex 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 College Retirement and Access Flex into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between College Retirement Equities and Access Flex High, you can compare the effects of market volatilities on College Retirement and Access Flex 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 College Retirement with a short position of Access Flex. Check out your portfolio center. Please also check ongoing floating volatility patterns of College Retirement and Access Flex.
Diversification Opportunities for College Retirement and Access Flex
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between College and Access is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding College Retirement Equities and Access Flex High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Access Flex High and College Retirement 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 College Retirement Equities are associated (or correlated) with Access Flex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Access Flex High has no effect on the direction of College Retirement i.e., College Retirement and Access Flex go up and down completely randomly.
Pair Corralation between College Retirement and Access Flex
Assuming the 90 days trading horizon College Retirement Equities is expected to generate 2.75 times more return on investment than Access Flex. However, College Retirement is 2.75 times more volatile than Access Flex High. It trades about 0.08 of its potential returns per unit of risk. Access Flex High is currently generating about 0.07 per unit of risk. If you would invest 33,968 in College Retirement Equities on October 26, 2024 and sell it today you would earn a total of 1,248 from holding College Retirement Equities or generate 3.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
College Retirement Equities vs. Access Flex High
Performance |
| Timeline |
| College Retirement |
| Access Flex High |
College Retirement and Access Flex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with College Retirement and Access Flex
The main advantage of trading using opposite College Retirement and Access Flex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if College Retirement position performs unexpectedly, Access Flex 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 Access Flex will offset losses from the drop in Access Flex's long position.| College Retirement vs. Vanguard Total Stock | College Retirement vs. Vanguard 500 Index | College Retirement vs. Vanguard Total Stock | College Retirement vs. Vanguard Total Stock |
| Access Flex vs. College Retirement Equities | Access Flex vs. American Funds Retirement | Access Flex vs. Tiaa Cref Lifestyle Moderate | Access Flex vs. Moderate Balanced Allocation |
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.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |