Correlation Between California Bond and Meeder Funds
Can any of the company-specific risk be diversified away by investing in both California Bond and Meeder Funds 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 California Bond and Meeder Funds into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between California Bond Fund and Meeder Funds , you can compare the effects of market volatilities on California Bond and Meeder Funds 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 California Bond with a short position of Meeder Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of California Bond and Meeder Funds.
Diversification Opportunities for California Bond and Meeder Funds
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between California and Meeder is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding California Bond Fund and Meeder Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Meeder Funds and California Bond 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 California Bond Fund are associated (or correlated) with Meeder Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Meeder Funds has no effect on the direction of California Bond i.e., California Bond and Meeder Funds go up and down completely randomly.
Pair Corralation between California Bond and Meeder Funds
Assuming the 90 days horizon California Bond is expected to generate 39.13 times less return on investment than Meeder Funds. But when comparing it to its historical volatility, California Bond Fund is 75.53 times less risky than Meeder Funds. It trades about 0.07 of its potential returns per unit of risk. Meeder Funds is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 91.00 in Meeder Funds on September 12, 2024 and sell it today you would earn a total of 9.00 from holding Meeder Funds or generate 9.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
California Bond Fund vs. Meeder Funds
Performance |
| Timeline |
| California Bond |
| Meeder Funds |
California Bond and Meeder Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with California Bond and Meeder Funds
The main advantage of trading using opposite California Bond and Meeder Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if California Bond position performs unexpectedly, Meeder Funds 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 Meeder Funds will offset losses from the drop in Meeder Funds' long position.| California Bond vs. Vanguard California Long Term | California Bond vs. Vanguard California Long Term | California Bond vs. SCOR PK | California Bond vs. Morningstar Unconstrained Allocation |
| Meeder Funds vs. T Rowe Price | Meeder Funds vs. Small Cap Stock | Meeder Funds vs. T Rowe Price | Meeder Funds vs. Omni Small Cap Value |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |