Correlation Between Cref Inflation-linked and Anchor Risk

Can any of the company-specific risk be diversified away by investing in both Cref Inflation-linked and Anchor Risk 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 Inflation-linked and Anchor Risk into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Cref Inflation Linked Bond and Anchor Risk Managed, you can compare the effects of market volatilities on Cref Inflation-linked and Anchor Risk 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 Inflation-linked with a short position of Anchor Risk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cref Inflation-linked and Anchor Risk.

Diversification Opportunities for Cref Inflation-linked and Anchor Risk

0.0

Correlation Coefficient

Cref Inflation-linked  Anchor Risk

Pay attention - limited upside

The 3 months correlation between Cref and Anchor is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Cref Inflation Linked Bond and Anchor Risk Managed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anchor Risk Managed and Cref Inflation-linked 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 Inflation Linked Bond are associated (or correlated) with Anchor Risk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anchor Risk Managed has no effect on the direction of Cref Inflation-linked i.e., Cref Inflation-linked and Anchor Risk go up and down completely randomly.

Pair Corralation between Cref Inflation-linked and Anchor Risk

If you would invest  8,785  in Cref Inflation Linked Bond on May 28, 2025 and sell it today you would earn a total of  238.00  from holding Cref Inflation Linked Bond or generate 2.71% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Cref Inflation Linked Bond  vs.  Anchor Risk Managed

Cref Inflation Linked

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Cref Inflation Linked Bond are ranked lower than 18 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Cref Inflation-linked is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Anchor Risk Managed

Risk-Adjusted Performance

Weakest

Over the last 90 days Anchor Risk Managed has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong primary indicators, Anchor Risk is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Cref Inflation-linked and Anchor Risk

The main advantage of trading using opposite Cref Inflation-linked and Anchor Risk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cref Inflation-linked position performs unexpectedly, Anchor Risk 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 Anchor Risk will offset losses from the drop in Anchor Risk's long position.

The idea behind Cref Inflation Linked Bond and Anchor Risk Managed pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 CEOs Directory module to screen CEOs from public companies around the world.