Correlation Between Federated Premier and Abrdn Emerging
Can any of the company-specific risk be diversified away by investing in both Federated Premier and Abrdn Emerging 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 Premier and Abrdn Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Federated Premier Municipal and Abrdn Emerging Markets, you can compare the effects of market volatilities on Federated Premier and Abrdn Emerging 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 Premier with a short position of Abrdn Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federated Premier and Abrdn Emerging.
Diversification Opportunities for Federated Premier and Abrdn Emerging
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Federated and Abrdn is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Federated Premier Municipal and Abrdn Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Abrdn Emerging Markets and Federated Premier 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 Premier Municipal are associated (or correlated) with Abrdn Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Abrdn Emerging Markets has no effect on the direction of Federated Premier i.e., Federated Premier and Abrdn Emerging go up and down completely randomly.
Pair Corralation between Federated Premier and Abrdn Emerging
Considering the 90-day investment horizon Federated Premier is expected to generate 1.03 times less return on investment than Abrdn Emerging. But when comparing it to its historical volatility, Federated Premier Municipal is 1.7 times less risky than Abrdn Emerging. It trades about 0.05 of its potential returns per unit of risk. Abrdn Emerging Markets is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 470.00 in Abrdn Emerging Markets on August 31, 2024 and sell it today you would earn a total of 54.00 from holding Abrdn Emerging Markets or generate 11.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Federated Premier Municipal vs. Abrdn Emerging Markets
Performance |
| Timeline |
| Federated Premier |
| Abrdn Emerging Markets |
Federated Premier and Abrdn Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federated Premier and Abrdn Emerging
The main advantage of trading using opposite Federated Premier and Abrdn Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federated Premier position performs unexpectedly, Abrdn Emerging 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 Abrdn Emerging will offset losses from the drop in Abrdn Emerging's long position.| Federated Premier vs. MFS Investment Grade | Federated Premier vs. Eaton Vance Municipal | Federated Premier vs. DTF Tax Free | Federated Premier vs. HUMANA INC |
| Abrdn Emerging vs. DWS Municipal Income | Abrdn Emerging vs. Blackrock Muni Intermediate | Abrdn Emerging vs. Blackrock Muniyield | Abrdn Emerging vs. Flow Capital Corp |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |