Correlation Between California High-yield and Federated Intercontinental
Can any of the company-specific risk be diversified away by investing in both California High-yield and Federated Intercontinental 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 High-yield and Federated Intercontinental into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between California High Yield Municipal and Federated Intercontinental Fund, you can compare the effects of market volatilities on California High-yield and Federated Intercontinental 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 High-yield with a short position of Federated Intercontinental. Check out your portfolio center. Please also check ongoing floating volatility patterns of California High-yield and Federated Intercontinental.
Diversification Opportunities for California High-yield and Federated Intercontinental
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between California and Federated is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding California High Yield Municipa and Federated Intercontinental Fun in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated Intercontinental and California High-yield 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 High Yield Municipal are associated (or correlated) with Federated Intercontinental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federated Intercontinental has no effect on the direction of California High-yield i.e., California High-yield and Federated Intercontinental go up and down completely randomly.
Pair Corralation between California High-yield and Federated Intercontinental
If you would invest 926.00 in California High Yield Municipal on September 4, 2024 and sell it today you would earn a total of 72.00 from holding California High Yield Municipal or generate 7.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
California High Yield Municipa vs. Federated Intercontinental Fun
Performance |
| Timeline |
| California High Yield |
| Federated Intercontinental |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
California High-yield and Federated Intercontinental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with California High-yield and Federated Intercontinental
The main advantage of trading using opposite California High-yield and Federated Intercontinental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if California High-yield position performs unexpectedly, Federated Intercontinental 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 Intercontinental will offset losses from the drop in Federated Intercontinental's long position.| California High-yield vs. Mid Cap Value | California High-yield vs. Equity Growth Fund | California High-yield vs. Income Growth Fund | California High-yield vs. Diversified Bond Fund |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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