Correlation Between California Bond and Ft 7934:
Can any of the company-specific risk be diversified away by investing in both California Bond and Ft 7934: 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 Ft 7934: 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 Ft 7934 Corporate, you can compare the effects of market volatilities on California Bond and Ft 7934: 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 Ft 7934:. Check out your portfolio center. Please also check ongoing floating volatility patterns of California Bond and Ft 7934:.
Diversification Opportunities for California Bond and Ft 7934:
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between California and FZNQEX is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding California Bond Fund and Ft 7934 Corporate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ft 7934 Corporate 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 Ft 7934:. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ft 7934 Corporate has no effect on the direction of California Bond i.e., California Bond and Ft 7934: go up and down completely randomly.
Pair Corralation between California Bond and Ft 7934:
Assuming the 90 days horizon California Bond Fund is expected to generate 2.6 times more return on investment than Ft 7934:. However, California Bond is 2.6 times more volatile than Ft 7934 Corporate. It trades about 0.26 of its potential returns per unit of risk. Ft 7934 Corporate is currently generating about -0.02 per unit of risk. If you would invest 1,031 in California Bond Fund on August 31, 2024 and sell it today you would earn a total of 20.00 from holding California Bond Fund or generate 1.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
California Bond Fund vs. Ft 7934 Corporate
Performance |
| Timeline |
| California Bond |
| Ft 7934 Corporate |
California Bond and Ft 7934: Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with California Bond and Ft 7934:
The main advantage of trading using opposite California Bond and Ft 7934: positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if California Bond position performs unexpectedly, Ft 7934: 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 Ft 7934: will offset losses from the drop in Ft 7934:'s long position.| California Bond vs. Aqr Risk Balanced Modities | California Bond vs. California High Yield Municipal | California Bond vs. Ab High Income | California Bond vs. Pace High Yield |
| Ft 7934: vs. Vanguard Total Stock | Ft 7934: vs. Vanguard 500 Index | Ft 7934: vs. Vanguard Total Stock | Ft 7934: vs. Vanguard Total Stock |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |