Correlation Between Federated Global and Fuller Thaler
Can any of the company-specific risk be diversified away by investing in both Federated Global and Fuller Thaler 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 Fuller Thaler 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 Fuller Thaler Behavioral, you can compare the effects of market volatilities on Federated Global and Fuller Thaler 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 Fuller Thaler. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federated Global and Fuller Thaler.
Diversification Opportunities for Federated Global and Fuller Thaler
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between FEDERATED and Fuller is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Federated Global Allocation and Fuller Thaler Behavioral in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fuller Thaler Behavioral 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 Fuller Thaler. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fuller Thaler Behavioral has no effect on the direction of Federated Global i.e., Federated Global and Fuller Thaler go up and down completely randomly.
Pair Corralation between Federated Global and Fuller Thaler
Assuming the 90 days horizon Federated Global Allocation is expected to under-perform the Fuller Thaler. But the mutual fund apears to be less risky and, when comparing its historical volatility, Federated Global Allocation is 2.18 times less risky than Fuller Thaler. The mutual fund trades about -0.25 of its potential returns per unit of risk. The Fuller Thaler Behavioral is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest 5,081 in Fuller Thaler Behavioral on October 9, 2024 and sell it today you would lose (95.00) from holding Fuller Thaler Behavioral or give up 1.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Federated Global Allocation vs. Fuller Thaler Behavioral
Performance |
| Timeline |
| Federated Global All |
| Fuller Thaler Behavioral |
Federated Global and Fuller Thaler Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federated Global and Fuller Thaler
The main advantage of trading using opposite Federated Global and Fuller Thaler positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federated Global position performs unexpectedly, Fuller Thaler 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 Fuller Thaler will offset losses from the drop in Fuller Thaler's long position.| Federated Global vs. Federated Bond Fund | Federated Global vs. Aquagold International | Federated Global vs. Thrivent High Yield | Federated Global vs. Morningstar Unconstrained Allocation |
| Fuller Thaler vs. Alger Health Sciences | Fuller Thaler vs. Delaware Healthcare Fund | Fuller Thaler vs. Lord Abbett Health | Fuller Thaler vs. Health Care Ultrasector |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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