Correlation Between Champlain Small and Federated
Can any of the company-specific risk be diversified away by investing in both Champlain Small and Federated 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 Champlain Small and Federated into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Champlain Small and Federated U S, you can compare the effects of market volatilities on Champlain Small and Federated 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 Champlain Small with a short position of Federated. Check out your portfolio center. Please also check ongoing floating volatility patterns of Champlain Small and Federated.
Diversification Opportunities for Champlain Small and Federated
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Champlain and Federated is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Champlain Small and Federated U S in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated U S and Champlain Small 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 Champlain Small are associated (or correlated) with Federated. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federated U S has no effect on the direction of Champlain Small i.e., Champlain Small and Federated go up and down completely randomly.
Pair Corralation between Champlain Small and Federated
If you would invest 2,324 in Champlain Small on September 4, 2024 and sell it today you would earn a total of 231.00 from holding Champlain Small or generate 9.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Champlain Small vs. Federated U S
Performance |
| Timeline |
| Champlain Small |
| Federated U S |
Champlain Small and Federated Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Champlain Small and Federated
The main advantage of trading using opposite Champlain Small and Federated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Champlain Small position performs unexpectedly, Federated 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 will offset losses from the drop in Federated's long position.| Champlain Small vs. The Hartford Midcap | Champlain Small vs. Mfs Emerging Markets | Champlain Small vs. Wells Fargo Special | Champlain Small vs. Washington Mutual Investors |
| Federated vs. Federated Government Income | Federated vs. Nationwide Fund Institutional | Federated vs. Federated Max Cap Index | Federated vs. The Brown Capital |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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