Correlation Between Federated Kaufmann and Western Asset
Can any of the company-specific risk be diversified away by investing in both Federated Kaufmann and Western Asset 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 Kaufmann and Western Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Federated Kaufmann Small and Western Asset Diversified, you can compare the effects of market volatilities on Federated Kaufmann and Western Asset 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 Kaufmann with a short position of Western Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federated Kaufmann and Western Asset.
Diversification Opportunities for Federated Kaufmann and Western Asset
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Federated and Western is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Federated Kaufmann Small and Western Asset Diversified in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Asset Diversified and Federated Kaufmann 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 Kaufmann Small are associated (or correlated) with Western Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Asset Diversified has no effect on the direction of Federated Kaufmann i.e., Federated Kaufmann and Western Asset go up and down completely randomly.
Pair Corralation between Federated Kaufmann and Western Asset
Assuming the 90 days horizon Federated Kaufmann Small is expected to under-perform the Western Asset. In addition to that, Federated Kaufmann is 6.87 times more volatile than Western Asset Diversified. It trades about -0.15 of its total potential returns per unit of risk. Western Asset Diversified is currently generating about 0.16 per unit of volatility. If you would invest 1,541 in Western Asset Diversified on September 14, 2024 and sell it today you would earn a total of 13.00 from holding Western Asset Diversified or generate 0.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Federated Kaufmann Small vs. Western Asset Diversified
Performance |
| Timeline |
| Federated Kaufmann Small |
| Western Asset Diversified |
Federated Kaufmann and Western Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federated Kaufmann and Western Asset
The main advantage of trading using opposite Federated Kaufmann and Western Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federated Kaufmann position performs unexpectedly, Western Asset 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 Western Asset will offset losses from the drop in Western Asset's long position.| Federated Kaufmann vs. Western Asset Diversified | Federated Kaufmann vs. Tiaa Cref Small Cap Blend | Federated Kaufmann vs. Jhancock Diversified Macro | Federated Kaufmann vs. Small Cap Stock |
| Western Asset vs. Vanguard Total Stock | Western Asset vs. Vanguard 500 Index | Western Asset vs. Vanguard Total Stock | Western Asset vs. Vanguard Total Stock |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |