Correlation Between Federated Intermediate and Eagle Mlp
Can any of the company-specific risk be diversified away by investing in both Federated Intermediate and Eagle Mlp 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 Eagle Mlp 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 Eagle Mlp Strategy, you can compare the effects of market volatilities on Federated Intermediate and Eagle Mlp 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 Eagle Mlp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federated Intermediate and Eagle Mlp.
Diversification Opportunities for Federated Intermediate and Eagle Mlp
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Federated and Eagle is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Federated Intermediate Municip and Eagle Mlp Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eagle Mlp Strategy 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 Eagle Mlp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eagle Mlp Strategy has no effect on the direction of Federated Intermediate i.e., Federated Intermediate and Eagle Mlp go up and down completely randomly.
Pair Corralation between Federated Intermediate and Eagle Mlp
Assuming the 90 days horizon Federated Intermediate is expected to generate 12.31 times less return on investment than Eagle Mlp. But when comparing it to its historical volatility, Federated Intermediate Municipal is 9.98 times less risky than Eagle Mlp. It trades about 0.07 of its potential returns per unit of risk. Eagle Mlp Strategy is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,059 in Eagle Mlp Strategy on November 3, 2024 and sell it today you would earn a total of 25.00 from holding Eagle Mlp Strategy or generate 2.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Federated Intermediate Municip vs. Eagle Mlp Strategy
Performance |
| Timeline |
| Federated Intermediate |
| Eagle Mlp Strategy |
Federated Intermediate and Eagle Mlp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federated Intermediate and Eagle Mlp
The main advantage of trading using opposite Federated Intermediate and Eagle Mlp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federated Intermediate position performs unexpectedly, Eagle Mlp 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 Eagle Mlp will offset losses from the drop in Eagle Mlp's long position.| Federated Intermediate vs. Lebenthal Lisanti Small | Federated Intermediate vs. Legg Mason Partners | Federated Intermediate vs. Needham Small Cap | Federated Intermediate vs. Rbc Small Cap |
| Eagle Mlp vs. Pace Municipal Fixed | Eagle Mlp vs. Baird Quality Intermediate | Eagle Mlp vs. Oklahoma Municipal Fund | Eagle Mlp vs. Ishares Municipal Bond |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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