Correlation Between Cref Money and First Investors
Can any of the company-specific risk be diversified away by investing in both Cref Money and First Investors 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 First Investors 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 First Investors Total, you can compare the effects of market volatilities on Cref Money and First Investors 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 First Investors. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cref Money and First Investors.
Diversification Opportunities for Cref Money and First Investors
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cref and First is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Cref Money Market and First Investors Total in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Investors Total 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 First Investors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Investors Total has no effect on the direction of Cref Money i.e., Cref Money and First Investors go up and down completely randomly.
Pair Corralation between Cref Money and First Investors
If you would invest 2,980 in Cref Money Market on October 23, 2024 and sell it today you would earn a total of 10.00 from holding Cref Money Market or generate 0.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 5.26% |
| Values | Daily Returns |
Cref Money Market vs. First Investors Total
Performance |
| Timeline |
| Cref Money Market |
| First Investors Total |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Cref Money and First Investors Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cref Money and First Investors
The main advantage of trading using opposite Cref Money and First Investors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cref Money position performs unexpectedly, First Investors 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 First Investors will offset losses from the drop in First Investors' 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 |
| First Investors vs. Greenspring Fund Retail | First Investors vs. Smallcap World Fund | First Investors vs. Doubleline Core Fixed | First Investors vs. Aqr Long Short Equity |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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