Correlation Between AssetMark Financial and Federated Investors
Can any of the company-specific risk be diversified away by investing in both AssetMark Financial and Federated Investors 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 AssetMark Financial and Federated Investors into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AssetMark Financial Holdings and Federated Investors B, you can compare the effects of market volatilities on AssetMark Financial and Federated Investors 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 AssetMark Financial with a short position of Federated Investors. Check out your portfolio center. Please also check ongoing floating volatility patterns of AssetMark Financial and Federated Investors.
Diversification Opportunities for AssetMark Financial and Federated Investors
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AssetMark and Federated is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding AssetMark Financial Holdings and Federated Investors B in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated Investors and AssetMark Financial 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 AssetMark Financial Holdings are associated (or correlated) with Federated Investors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federated Investors has no effect on the direction of AssetMark Financial i.e., AssetMark Financial and Federated Investors go up and down completely randomly.
Pair Corralation between AssetMark Financial and Federated Investors
Considering the 90-day investment horizon AssetMark Financial Holdings is expected to under-perform the Federated Investors. In addition to that, AssetMark Financial is 3.67 times more volatile than Federated Investors B. It trades about -0.03 of its total potential returns per unit of risk. Federated Investors B is currently generating about 0.04 per unit of volatility. If you would invest 3,463 in Federated Investors B on August 24, 2024 and sell it today you would earn a total of 771.00 from holding Federated Investors B or generate 22.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 88.91% |
| Values | Daily Returns |
AssetMark Financial Holdings vs. Federated Investors B
Performance |
| Timeline |
| AssetMark Financial |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Federated Investors |
AssetMark Financial and Federated Investors Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AssetMark Financial and Federated Investors
The main advantage of trading using opposite AssetMark Financial and Federated Investors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AssetMark Financial position performs unexpectedly, Federated Investors 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 Federated Investors will offset losses from the drop in Federated Investors' long position.| AssetMark Financial vs. Abrdn Emerging Markets | AssetMark Financial vs. DWS Municipal Income | AssetMark Financial vs. Blackrock Muni Intermediate | AssetMark Financial vs. Blackrock Muniyield |
| Federated Investors vs. Federated Premier Municipal | Federated Investors vs. Blackrock Muniyield | Federated Investors vs. Diamond Hill Investment | Federated Investors vs. NXG NextGen Infrastructure |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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