Correlation Between Federated Government and Dgi Investment
Can any of the company-specific risk be diversified away by investing in both Federated Government and Dgi Investment 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 Government and Dgi Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Federated Government Ultrashort and Dgi Investment Trust, you can compare the effects of market volatilities on Federated Government and Dgi Investment 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 Government with a short position of Dgi Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federated Government and Dgi Investment.
Diversification Opportunities for Federated Government and Dgi Investment
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between FEDERATED and DGI is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Federated Government Ultrashor and Dgi Investment Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dgi Investment Trust and Federated Government 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 Government Ultrashort are associated (or correlated) with Dgi Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dgi Investment Trust has no effect on the direction of Federated Government i.e., Federated Government and Dgi Investment go up and down completely randomly.
Pair Corralation between Federated Government and Dgi Investment
Assuming the 90 days horizon Federated Government is expected to generate 2.56 times less return on investment than Dgi Investment. But when comparing it to its historical volatility, Federated Government Ultrashort is 5.46 times less risky than Dgi Investment. It trades about 0.22 of its potential returns per unit of risk. Dgi Investment Trust is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,166 in Dgi Investment Trust on October 25, 2024 and sell it today you would earn a total of 12.00 from holding Dgi Investment Trust or generate 1.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Federated Government Ultrashor vs. Dgi Investment Trust
Performance |
| Timeline |
| Federated Government |
| Dgi Investment Trust |
Federated Government and Dgi Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federated Government and Dgi Investment
The main advantage of trading using opposite Federated Government and Dgi Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federated Government position performs unexpectedly, Dgi Investment 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 Dgi Investment will offset losses from the drop in Dgi Investment's long position.| Federated Government vs. Pimco Short Term Fund | Federated Government vs. Short Term Fund Institutional | Federated Government vs. Short Term Fund Administrative | Federated Government vs. Short Term Fund R |
| Dgi Investment vs. Federated Government Ultrashort | Dgi Investment vs. Touchstone Ultra Short | Dgi Investment vs. Nuveen Short Duration High | Dgi Investment vs. Angel Oak Ultrashort |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |