Short Term Correlations

SRIXX Fund

USD 1.00 0.00 0.00%

The correlation of Short Term is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Short Term moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Short Term Investment Trust moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.

Average diversification

The correlation between Short Term Investment Trust and NYA is 0.12 (i.e., Average diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Short Term Investment Trust and NYA in the same portfolio, assuming nothing else is changed.

Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Short Term Investment Trust. Also, note that the market value of any money market fund could be tightly coupled with the direction of predictive economic indicators such as signals in interest.

The ability to find closely correlated positions to Short Term could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Short Term when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Short Term - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Short Term Investment Trust to buy it.

Moving together with Short Money Market Fund

0.7	VTSAX	Vanguard Total Stock	Pair Corr
0.73	VFIAX	Vanguard 500 Index	Pair Corr
0.7	VTSMX	Vanguard Total Stock	Pair Corr
0.7	VITSX	Vanguard Total Stock	Pair Corr
0.7	VSTSX	Vanguard Total Stock	Pair Corr
0.7	VSMPX	Vanguard Total Stock	Pair Corr
0.72	VFINX	Vanguard 500 Index	Pair Corr
0.73	VFFSX	Vanguard 500 Index	Pair Corr
0.79	VGTSX	Vanguard Total Inter	Pair Corr
0.78	VTIAX	Vanguard Total Inter	Pair Corr
0.84	CAT	Caterpillar Financial Report 6th of August 2024	Pair Corr
0.83	DD	Dupont De Nemours Report 7th of May 2024	Pair Corr
0.71	AA	Alcoa Corp Financial Report 17th of July 2024	Pair Corr
0.78	MMM	3M Company Buyout Trend	Pair Corr
0.75	AXP	American Express Earnings Call This Week	Pair Corr

Moving against Short Money Market Fund

0.76	BA	Boeing Financial Report 24th of July 2024	Pair Corr
0.42	INTC	Intel Financial Report 25th of July 2024	Pair Corr

Related Correlations Analysis

	VTSAX	VFIAX	VTSMX	VITSX	VSTSX	VSMPX	VFINX	VFFSX	VGTSX	VTIAX
VTSAX		1.0	1.0	1.0	1.0	1.0	1.0	1.0	0.95	0.94	VTSAX
VFIAX	1.0		1.0	1.0	1.0	1.0	1.0	1.0	0.95	0.95	VFIAX
VTSMX	1.0	1.0		1.0	1.0	1.0	1.0	1.0	0.94	0.94	VTSMX
VITSX	1.0	1.0	1.0		1.0	1.0	1.0	1.0	0.95	0.95	VITSX
VSTSX	1.0	1.0	1.0	1.0		1.0	1.0	1.0	0.95	0.95	VSTSX
VSMPX	1.0	1.0	1.0	1.0	1.0		1.0	1.0	0.95	0.95	VSMPX
VFINX	1.0	1.0	1.0	1.0	1.0	1.0		1.0	0.95	0.95	VFINX
VFFSX	1.0	1.0	1.0	1.0	1.0	1.0	1.0		0.95	0.95	VFFSX
VGTSX	0.95	0.95	0.94	0.95	0.95	0.95	0.95	0.95		1.0	VGTSX
VTIAX	0.94	0.95	0.94	0.95	0.95	0.95	0.95	0.95	1.0		VTIAX
	VTSAX	VFIAX	VTSMX	VITSX	VSTSX	VSMPX	VFINX	VFFSX	VGTSX	VTIAX

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Risk-Adjusted Indicators

There is a big difference between Short Money Market Fund performing well and Short Term Money Market Fund doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Short Term's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

	Mean Deviation	Jensen Alpha	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
VTSAX	0.64	(0.02)	(0.01)	0.03	0.73	(0.67)	1.26	(1.50)	3.49
VFIAX	0.61	(0.01)	(0.01)	0.04	0.68	(0.66)	1.13	(1.36)	3.56
VTSMX	0.64	(0.02)	(0.01)	0.03	0.73	(0.67)	1.26	(1.50)	3.48
VITSX	0.64	(0.02)	(0.01)	0.03	0.73	(0.67)	1.26	(1.50)	3.49
VSTSX	0.64	(0.02)	(0.01)	0.03	0.73	(0.67)	1.26	(1.50)	3.49
VSMPX	0.64	(0.02)	(0.01)	0.03	0.73	(0.67)	1.26	(1.50)	3.49
VFINX	0.62	(0.01)	(0.01)	0.04	0.68	(0.67)	1.20	(1.36)	3.56
VFFSX	0.62	(0.01)	(0.01)	0.04	0.69	(0.67)	1.20	(1.35)	3.56
VGTSX	0.50	0.00	(0.01)	0.05	0.58	(0.52)	1.02	(1.12)	2.83
VTIAX	0.50	0.00	(0.01)	0.05	0.60	(0.53)	1.02	(1.11)	2.79

Be your own money manager

Our tools can tell you how much better you can do entering a position in Short Term without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

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Already Invested in Short Term Investment Trust?

The danger of trading Short Term Investment Trust is mainly related to its market volatility and Money Market Fund specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of Short Term is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than Short Term. The Sharpe ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile Short Term Investment is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.

You can also try the Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.

Please note, there is a significant difference between Short Term's value and its price as these two are different measures arrived at by different means. Investors typically determine if Short Term is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Short Term's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

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