Correlation Between Federated Premier and Puyi
Can any of the company-specific risk be diversified away by investing in both Federated Premier and Puyi 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 Puyi 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 Puyi Inc ADR, you can compare the effects of market volatilities on Federated Premier and Puyi 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 Puyi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federated Premier and Puyi.
Diversification Opportunities for Federated Premier and Puyi
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Federated and Puyi is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Federated Premier Municipal and Puyi Inc ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Puyi Inc ADR 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 Puyi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Puyi Inc ADR has no effect on the direction of Federated Premier i.e., Federated Premier and Puyi go up and down completely randomly.
Pair Corralation between Federated Premier and Puyi
If you would invest 620.00 in Puyi Inc ADR on August 25, 2024 and sell it today you would earn a total of 0.00 from holding Puyi Inc ADR or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Federated Premier Municipal vs. Puyi Inc ADR
Performance |
| Timeline |
| Federated Premier |
| Puyi Inc ADR |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Federated Premier and Puyi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federated Premier and Puyi
The main advantage of trading using opposite Federated Premier and Puyi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federated Premier position performs unexpectedly, Puyi 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 Puyi will offset losses from the drop in Puyi's long position.| Federated Premier vs. MFS Investment Grade | Federated Premier vs. Eaton Vance National | Federated Premier vs. Blackrock Muniyield Quality | Federated Premier vs. DTF Tax Free |
| Puyi vs. Eaton Vance National | Puyi vs. Invesco High Income | Puyi vs. Blackrock Muniholdings Ny | Puyi vs. Nuveen California Select |
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.
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