Correlation Between Federated Global and Federated Global
Can any of the company-specific risk be diversified away by investing in both Federated Global and Federated Global 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 Federated Global 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 Federated Global Allocation, you can compare the effects of market volatilities on Federated Global and Federated Global 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 Federated Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federated Global and Federated Global.
Diversification Opportunities for Federated Global and Federated Global
1.0 | Correlation Coefficient |
No risk reduction
The 3 months correlation between FEDERATED and Federated is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding Federated Global Allocation and Federated Global Allocation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated Global All 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 Federated Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federated Global All has no effect on the direction of Federated Global i.e., Federated Global and Federated Global go up and down completely randomly.
Pair Corralation between Federated Global and Federated Global
Assuming the 90 days horizon Federated Global is expected to generate 1.11 times less return on investment than Federated Global. In addition to that, Federated Global is 1.0 times more volatile than Federated Global Allocation. It trades about 0.07 of its total potential returns per unit of risk. Federated Global Allocation is currently generating about 0.08 per unit of volatility. If you would invest 1,692 in Federated Global Allocation on September 1, 2024 and sell it today you would earn a total of 396.00 from holding Federated Global Allocation or generate 23.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.8% |
| Values | Daily Returns |
Federated Global Allocation vs. Federated Global Allocation
Performance |
| Timeline |
| Federated Global All |
| Federated Global All |
Federated Global and Federated Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federated Global and Federated Global
The main advantage of trading using opposite Federated Global and Federated Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federated Global position performs unexpectedly, Federated Global 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 Federated Global will offset losses from the drop in Federated Global'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 |
| Federated Global vs. International Investors Gold | Federated Global vs. Great West Goldman Sachs | Federated Global vs. Gold And Precious | Federated Global vs. Franklin Gold Precious |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |