Correlation Between Cref Money and Aquila Tax-free
Can any of the company-specific risk be diversified away by investing in both Cref Money and Aquila Tax-free 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 Cref Money and Aquila Tax-free into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cref Money Market and Aquila Tax Free Trust, you can compare the effects of market volatilities on Cref Money and Aquila Tax-free 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 Cref Money with a short position of Aquila Tax-free. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cref Money and Aquila Tax-free.
Diversification Opportunities for Cref Money and Aquila Tax-free
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cref and Aquila is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Cref Money Market and Aquila Tax Free Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aquila Tax Free and Cref 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 Cref Money Market are associated (or correlated) with Aquila Tax-free. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aquila Tax Free has no effect on the direction of Cref Money i.e., Cref Money and Aquila Tax-free go up and down completely randomly.
Pair Corralation between Cref Money and Aquila Tax-free
Assuming the 90 days trading horizon Cref Money Market is expected to generate 0.12 times more return on investment than Aquila Tax-free. However, Cref Money Market is 8.36 times less risky than Aquila Tax-free. It trades about 0.96 of its potential returns per unit of risk. Aquila Tax Free Trust is currently generating about 0.09 per unit of risk. If you would invest 2,877 in Cref Money Market on September 3, 2024 and sell it today you would earn a total of 95.00 from holding Cref Money Market or generate 3.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cref Money Market vs. Aquila Tax Free Trust
Performance |
| Timeline |
| Cref Money Market |
| Aquila Tax Free |
Cref Money and Aquila Tax-free Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cref Money and Aquila Tax-free
The main advantage of trading using opposite Cref Money and Aquila Tax-free positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cref Money position performs unexpectedly, Aquila Tax-free 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 Aquila Tax-free will offset losses from the drop in Aquila Tax-free's long position.| Cref Money vs. Health Biotchnology Portfolio | Cref Money vs. Health Biotchnology Portfolio | Cref Money vs. Lord Abbett Health | Cref Money vs. Allianzgi Health Sciences |
| Aquila Tax-free vs. Touchstone Premium Yield | Aquila Tax-free vs. The Fixed Income | Aquila Tax-free vs. Gmo High Yield | Aquila Tax-free vs. Ambrus Core Bond |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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