Correlation Between Federated Bond and Bbh Intermediate
Can any of the company-specific risk be diversified away by investing in both Federated Bond and Bbh Intermediate 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 Federated Bond and Bbh Intermediate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Federated Bond Fund and Bbh Intermediate Municipal, you can compare the effects of market volatilities on Federated Bond and Bbh Intermediate 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 Federated Bond with a short position of Bbh Intermediate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federated Bond and Bbh Intermediate.
Diversification Opportunities for Federated Bond and Bbh Intermediate
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Federated and Bbh is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Federated Bond Fund and Bbh Intermediate Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bbh Intermediate Mun and Federated Bond 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 Federated Bond Fund are associated (or correlated) with Bbh Intermediate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bbh Intermediate Mun has no effect on the direction of Federated Bond i.e., Federated Bond and Bbh Intermediate go up and down completely randomly.
Pair Corralation between Federated Bond and Bbh Intermediate
Assuming the 90 days horizon Federated Bond Fund is expected to generate 1.51 times more return on investment than Bbh Intermediate. However, Federated Bond is 1.51 times more volatile than Bbh Intermediate Municipal. It trades about 0.0 of its potential returns per unit of risk. Bbh Intermediate Municipal is currently generating about -0.03 per unit of risk. If you would invest 830.00 in Federated Bond Fund on October 21, 2024 and sell it today you would earn a total of 0.00 from holding Federated Bond Fund or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Federated Bond Fund vs. Bbh Intermediate Municipal
Performance |
| Timeline |
| Federated Bond |
| Bbh Intermediate Mun |
Federated Bond and Bbh Intermediate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federated Bond and Bbh Intermediate
The main advantage of trading using opposite Federated Bond and Bbh Intermediate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federated Bond position performs unexpectedly, Bbh Intermediate 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 Bbh Intermediate will offset losses from the drop in Bbh Intermediate's long position.| Federated Bond vs. Semiconductor Ultrasector Profund | Federated Bond vs. Volumetric Fund Volumetric | Federated Bond vs. Rbb Fund | Federated Bond vs. Victory Rs Partners |
| Bbh Intermediate vs. William Blair Small | Bbh Intermediate vs. Amg River Road | Bbh Intermediate vs. Fidelity Small Cap | Bbh Intermediate vs. Small Cap Value 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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