Correlation Between Federated High and Catalyst/cifc Floating
Can any of the company-specific risk be diversified away by investing in both Federated High and Catalyst/cifc Floating 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 Catalyst/cifc Floating 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 Catalystcifc Floating Rate, you can compare the effects of market volatilities on Federated High and Catalyst/cifc Floating 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 Catalyst/cifc Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federated High and Catalyst/cifc Floating.
Diversification Opportunities for Federated High and Catalyst/cifc Floating
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Federated and Catalyst/cifc is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Federated High Yield and Catalystcifc Floating Rate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catalyst/cifc Floating 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 Catalyst/cifc Floating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catalyst/cifc Floating has no effect on the direction of Federated High i.e., Federated High and Catalyst/cifc Floating go up and down completely randomly.
Pair Corralation between Federated High and Catalyst/cifc Floating
If you would invest 635.00 in Federated High Yield on November 3, 2024 and sell it today you would earn a total of 6.00 from holding Federated High Yield or generate 0.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Federated High Yield vs. Catalystcifc Floating Rate
Performance |
| Timeline |
| Federated High Yield |
| Catalyst/cifc Floating |
Federated High and Catalyst/cifc Floating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federated High and Catalyst/cifc Floating
The main advantage of trading using opposite Federated High and Catalyst/cifc Floating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federated High position performs unexpectedly, Catalyst/cifc Floating 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 Catalyst/cifc Floating will offset losses from the drop in Catalyst/cifc Floating's long position.| Federated High vs. Siit Emerging Markets | Federated High vs. Western Assets Emerging | Federated High vs. Franklin Emerging Market | Federated High vs. Morgan Stanley Emerging |
| Catalyst/cifc Floating vs. The Growth Equity | Catalyst/cifc Floating vs. Us Vector Equity | Catalyst/cifc Floating vs. Smallcap World Fund | Catalyst/cifc Floating vs. Doubleline Core Fixed |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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