Correlation Between Federated High and Artisan High
Can any of the company-specific risk be diversified away by investing in both Federated High and Artisan High 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 Artisan High 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 Artisan High Income, you can compare the effects of market volatilities on Federated High and Artisan High 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 Artisan High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federated High and Artisan High.
Diversification Opportunities for Federated High and Artisan High
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Federated and Artisan is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Federated High Yield and Artisan High Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Artisan High 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 Artisan High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Artisan High Income has no effect on the direction of Federated High i.e., Federated High and Artisan High go up and down completely randomly.
Pair Corralation between Federated High and Artisan High
Assuming the 90 days horizon Federated High is expected to generate 1.06 times less return on investment than Artisan High. In addition to that, Federated High is 1.12 times more volatile than Artisan High Income. It trades about 0.2 of its total potential returns per unit of risk. Artisan High Income is currently generating about 0.24 per unit of volatility. If you would invest 869.00 in Artisan High Income on September 1, 2024 and sell it today you would earn a total of 48.00 from holding Artisan High Income or generate 5.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.21% |
| Values | Daily Returns |
Federated High Yield vs. Artisan High Income
Performance |
| Timeline |
| Federated High Yield |
| Artisan High Income |
Federated High and Artisan High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federated High and Artisan High
The main advantage of trading using opposite Federated High and Artisan High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federated High position performs unexpectedly, Artisan High 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 Artisan High will offset losses from the drop in Artisan High's long position.| Federated High vs. Federated Mdt Balanced | Federated High vs. Federated Hermes Emerging | Federated High vs. Federated Strategic Income | Federated High vs. Federated Strategic Income |
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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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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