Correlation Between Cref Money and State Street
Can any of the company-specific risk be diversified away by investing in both Cref Money and State Street 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 State Street 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 State Street Aggregate, you can compare the effects of market volatilities on Cref Money and State Street 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 State Street. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cref Money and State Street.
Diversification Opportunities for Cref Money and State Street
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cref and State is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Cref Money Market and State Street Aggregate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on State Street Aggregate 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 State Street. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of State Street Aggregate has no effect on the direction of Cref Money i.e., Cref Money and State Street go up and down completely randomly.
Pair Corralation between Cref Money and State Street
Assuming the 90 days trading horizon Cref Money Market is expected to generate 0.06 times more return on investment than State Street. However, Cref Money Market is 16.07 times less risky than State Street. It trades about 0.81 of its potential returns per unit of risk. State Street Aggregate is currently generating about 0.04 per unit of risk. If you would invest 2,700 in Cref Money Market on September 13, 2024 and sell it today you would earn a total of 276.00 from holding Cref Money Market or generate 10.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 96.97% |
| Values | Daily Returns |
Cref Money Market vs. State Street Aggregate
Performance |
| Timeline |
| Cref Money Market |
| State Street Aggregate |
Cref Money and State Street Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cref Money and State Street
The main advantage of trading using opposite Cref Money and State Street positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cref Money position performs unexpectedly, State Street 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 State Street will offset losses from the drop in State Street's long position.| Cref Money vs. Davis Financial Fund | Cref Money vs. Blackrock Financial Institutions | Cref Money vs. Transamerica Financial Life | Cref Money vs. Mesirow Financial Small |
| State Street vs. Dws Government Money | State Street vs. Franklin Government Money | State Street vs. Cref Money Market | State Street vs. The Gabelli 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |