Correlation Between Boston Partners and Federated High
Can any of the company-specific risk be diversified away by investing in both Boston Partners and Federated High 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 Boston Partners and Federated High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boston Partners Longshort and Federated High Income, you can compare the effects of market volatilities on Boston Partners and Federated High 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 Boston Partners with a short position of Federated High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boston Partners and Federated High.
Diversification Opportunities for Boston Partners and Federated High
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Boston and Federated is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Boston Partners Longshort and Federated High Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated High Income and Boston Partners 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 Boston Partners Longshort are associated (or correlated) with Federated High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federated High Income has no effect on the direction of Boston Partners i.e., Boston Partners and Federated High go up and down completely randomly.
Pair Corralation between Boston Partners and Federated High
If you would invest 1,355 in Boston Partners Longshort on October 22, 2024 and sell it today you would earn a total of 36.00 from holding Boston Partners Longshort or generate 2.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 5.56% |
| Values | Daily Returns |
Boston Partners Longshort vs. Federated High Income
Performance |
| Timeline |
| Boston Partners Longshort |
| Federated High Income |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Boston Partners and Federated High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boston Partners and Federated High
The main advantage of trading using opposite Boston Partners and Federated High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boston Partners position performs unexpectedly, Federated High 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 High will offset losses from the drop in Federated High's long position.| Boston Partners vs. Aqr Managed Futures | Boston Partners vs. Neuberger Berman Long | Boston Partners vs. Asg Managed Futures | Boston Partners vs. Marketfield Fund Marketfield |
| Federated High vs. Smallcap Fund Fka | Federated High vs. Hunter Small Cap | Federated High vs. Small Pany Growth | Federated High vs. Ab Small Cap |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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