Correlation Between Cref Money and Eventide Gilead
Can any of the company-specific risk be diversified away by investing in both Cref Money and Eventide Gilead 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 Eventide Gilead 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 Eventide Gilead Fund, you can compare the effects of market volatilities on Cref Money and Eventide Gilead 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 Eventide Gilead. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cref Money and Eventide Gilead.
Diversification Opportunities for Cref Money and Eventide Gilead
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Cref and Eventide is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Cref Money Market and Eventide Gilead Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eventide Gilead 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 Eventide Gilead. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eventide Gilead has no effect on the direction of Cref Money i.e., Cref Money and Eventide Gilead go up and down completely randomly.
Pair Corralation between Cref Money and Eventide Gilead
Assuming the 90 days trading horizon Cref Money is expected to generate 3.52 times less return on investment than Eventide Gilead. But when comparing it to its historical volatility, Cref Money Market is 61.77 times less risky than Eventide Gilead. It trades about 0.93 of its potential returns per unit of risk. Eventide Gilead Fund is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 5,210 in Eventide Gilead Fund on September 12, 2024 and sell it today you would earn a total of 56.00 from holding Eventide Gilead Fund or generate 1.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cref Money Market vs. Eventide Gilead Fund
Performance |
| Timeline |
| Cref Money Market |
| Eventide Gilead |
Cref Money and Eventide Gilead Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cref Money and Eventide Gilead
The main advantage of trading using opposite Cref Money and Eventide Gilead positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cref Money position performs unexpectedly, Eventide Gilead 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 Eventide Gilead will offset losses from the drop in Eventide Gilead's long position.| Cref Money vs. Vanguard Total Stock | Cref Money vs. Vanguard 500 Index | Cref Money vs. Vanguard Total Stock | Cref Money vs. Vanguard Total Stock |
| Eventide Gilead vs. Hewitt Money Market | Eventide Gilead vs. Cref Money Market | Eventide Gilead vs. Putnam Money Market | Eventide Gilead vs. Edward Jones Money |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |