Correlation Between Federated Global and Delaware Reit
Can any of the company-specific risk be diversified away by investing in both Federated Global and Delaware Reit 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 Global and Delaware Reit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Federated Global Allocation and Delaware Reit Fund, you can compare the effects of market volatilities on Federated Global and Delaware Reit 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 Global with a short position of Delaware Reit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federated Global and Delaware Reit.
Diversification Opportunities for Federated Global and Delaware Reit
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between FEDERATED and Delaware is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Federated Global Allocation and Delaware Reit Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Delaware Reit and Federated Global 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 Global Allocation are associated (or correlated) with Delaware Reit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Delaware Reit has no effect on the direction of Federated Global i.e., Federated Global and Delaware Reit go up and down completely randomly.
Pair Corralation between Federated Global and Delaware Reit
Assuming the 90 days horizon Federated Global Allocation is expected to generate 0.98 times more return on investment than Delaware Reit. However, Federated Global Allocation is 1.02 times less risky than Delaware Reit. It trades about 0.33 of its potential returns per unit of risk. Delaware Reit Fund is currently generating about 0.16 per unit of risk. If you would invest 1,947 in Federated Global Allocation on September 1, 2024 and sell it today you would earn a total of 63.00 from holding Federated Global Allocation or generate 3.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Federated Global Allocation vs. Delaware Reit Fund
Performance |
| Timeline |
| Federated Global All |
| Delaware Reit |
Federated Global and Delaware Reit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federated Global and Delaware Reit
The main advantage of trading using opposite Federated Global and Delaware Reit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federated Global position performs unexpectedly, Delaware Reit 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 Delaware Reit will offset losses from the drop in Delaware Reit's long position.| Federated Global vs. Federated Max Cap Index | Federated Global vs. Federated Fund For | Federated Global vs. Aquagold International | Federated Global vs. Thrivent High Yield |
| Delaware Reit vs. Us Global Leaders | Delaware Reit vs. Scharf Global Opportunity | Delaware Reit vs. Federated Global Allocation | Delaware Reit vs. Kinetics Global Fund |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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