Correlation Between Federated High and Ab Fixed
Can any of the company-specific risk be diversified away by investing in both Federated High and Ab Fixed 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 High and Ab Fixed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Federated High Yield and Ab Fixed Income Shares, you can compare the effects of market volatilities on Federated High and Ab Fixed 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 High with a short position of Ab Fixed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federated High and Ab Fixed.
Diversification Opportunities for Federated High and Ab Fixed
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Federated and AECXX is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Federated High Yield and Ab Fixed Income Shares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab Fixed Income and Federated High 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 High Yield are associated (or correlated) with Ab Fixed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab Fixed Income has no effect on the direction of Federated High i.e., Federated High and Ab Fixed go up and down completely randomly.
Pair Corralation between Federated High and Ab Fixed
If you would invest 594.00 in Federated High Yield on October 25, 2024 and sell it today you would earn a total of 46.00 from holding Federated High Yield or generate 7.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 63.24% |
| Values | Daily Returns |
Federated High Yield vs. Ab Fixed Income Shares
Performance |
| Timeline |
| Federated High Yield |
| Ab Fixed Income |
Federated High and Ab Fixed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federated High and Ab Fixed
The main advantage of trading using opposite Federated High and Ab Fixed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federated High position performs unexpectedly, Ab Fixed 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 Ab Fixed will offset losses from the drop in Ab Fixed's long position.| Federated High vs. Jpmorgan High Yield | Federated High vs. Lord Abbett Short | Federated High vs. T Rowe Price | Federated High vs. Voya High Yield |
| Ab Fixed vs. Virtus Multi Sector Short | Ab Fixed vs. Vela Short Duration | Ab Fixed vs. Angel Oak Ultrashort | Ab Fixed vs. Blackrock Global Longshort |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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