Correlation Between Federated Premier and Gdl Closed
Can any of the company-specific risk be diversified away by investing in both Federated Premier and Gdl Closed 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 Gdl Closed 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 Gdl Closed Fund, you can compare the effects of market volatilities on Federated Premier and Gdl Closed 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 Gdl Closed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federated Premier and Gdl Closed.
Diversification Opportunities for Federated Premier and Gdl Closed
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Federated and Gdl is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Federated Premier Municipal and Gdl Closed Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gdl Closed Fund 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 Gdl Closed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gdl Closed Fund has no effect on the direction of Federated Premier i.e., Federated Premier and Gdl Closed go up and down completely randomly.
Pair Corralation between Federated Premier and Gdl Closed
Considering the 90-day investment horizon Federated Premier is expected to generate 1.92 times less return on investment than Gdl Closed. In addition to that, Federated Premier is 1.85 times more volatile than Gdl Closed Fund. It trades about 0.04 of its total potential returns per unit of risk. Gdl Closed Fund is currently generating about 0.14 per unit of volatility. If you would invest 760.00 in Gdl Closed Fund on September 3, 2024 and sell it today you would earn a total of 54.00 from holding Gdl Closed Fund or generate 7.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Federated Premier Municipal vs. Gdl Closed Fund
Performance |
| Timeline |
| Federated Premier |
| Gdl Closed Fund |
Federated Premier and Gdl Closed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federated Premier and Gdl Closed
The main advantage of trading using opposite Federated Premier and Gdl Closed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federated Premier position performs unexpectedly, Gdl Closed 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 Gdl Closed will offset losses from the drop in Gdl Closed's long position.| Federated Premier vs. Tekla Healthcare Investors | Federated Premier vs. Tekla Life Sciences | Federated Premier vs. Cohen Steers Reit | Federated Premier vs. XAI Octagon Floating |
| Gdl Closed vs. Tekla Healthcare Investors | Gdl Closed vs. Tekla Life Sciences | Gdl Closed vs. Cohen Steers Reit | Gdl Closed vs. XAI Octagon Floating |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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