Correlation Between Federated Intermediate and Ab New
Can any of the company-specific risk be diversified away by investing in both Federated Intermediate and Ab New 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 Intermediate and Ab New into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Federated Intermediate Municipal and Ab New York, you can compare the effects of market volatilities on Federated Intermediate and Ab New 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 Intermediate with a short position of Ab New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federated Intermediate and Ab New.
Diversification Opportunities for Federated Intermediate and Ab New
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Federated and ALNVX is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Federated Intermediate Municip and Ab New York in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ab New York and Federated Intermediate 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 Intermediate Municipal are associated (or correlated) with Ab New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ab New York has no effect on the direction of Federated Intermediate i.e., Federated Intermediate and Ab New go up and down completely randomly.
Pair Corralation between Federated Intermediate and Ab New
Assuming the 90 days horizon Federated Intermediate Municipal is expected to generate 0.74 times more return on investment than Ab New. However, Federated Intermediate Municipal is 1.35 times less risky than Ab New. It trades about 0.07 of its potential returns per unit of risk. Ab New York is currently generating about 0.0 per unit of risk. If you would invest 963.00 in Federated Intermediate Municipal on October 23, 2024 and sell it today you would earn a total of 2.00 from holding Federated Intermediate Municipal or generate 0.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 94.74% |
| Values | Daily Returns |
Federated Intermediate Municip vs. Ab New York
Performance |
| Timeline |
| Federated Intermediate |
| Ab New York |
Federated Intermediate and Ab New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federated Intermediate and Ab New
The main advantage of trading using opposite Federated Intermediate and Ab New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federated Intermediate position performs unexpectedly, Ab New 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 New will offset losses from the drop in Ab New's long position.| Federated Intermediate vs. Nuveen Strategic Municipal | Federated Intermediate vs. Barings High Yield | Federated Intermediate vs. Federated High Yield | Federated Intermediate vs. Morningstar Defensive Bond |
| Ab New vs. Amg River Road | Ab New vs. Mid Cap Value Profund | Ab New vs. Lsv Small Cap | Ab New vs. Valic Company I |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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