Correlation Between Federated Global and Rm Greyhawk
Can any of the company-specific risk be diversified away by investing in both Federated Global and Rm Greyhawk 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 Rm Greyhawk 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 Rm Greyhawk Fund, you can compare the effects of market volatilities on Federated Global and Rm Greyhawk 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 Rm Greyhawk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federated Global and Rm Greyhawk.
Diversification Opportunities for Federated Global and Rm Greyhawk
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between FEDERATED and HAWKX is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Federated Global Allocation and Rm Greyhawk Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rm Greyhawk Fund 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 Rm Greyhawk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rm Greyhawk Fund has no effect on the direction of Federated Global i.e., Federated Global and Rm Greyhawk go up and down completely randomly.
Pair Corralation between Federated Global and Rm Greyhawk
Assuming the 90 days horizon Federated Global Allocation is expected to generate 26.84 times more return on investment than Rm Greyhawk. However, Federated Global is 26.84 times more volatile than Rm Greyhawk Fund. It trades about 0.31 of its potential returns per unit of risk. Rm Greyhawk Fund is currently generating about 0.55 per unit of risk. If you would invest 1,950 in Federated Global Allocation on September 2, 2024 and sell it today you would earn a total of 60.00 from holding Federated Global Allocation or generate 3.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Federated Global Allocation vs. Rm Greyhawk Fund
Performance |
| Timeline |
| Federated Global All |
| Rm Greyhawk Fund |
Federated Global and Rm Greyhawk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federated Global and Rm Greyhawk
The main advantage of trading using opposite Federated Global and Rm Greyhawk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federated Global position performs unexpectedly, Rm Greyhawk 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 Rm Greyhawk will offset losses from the drop in Rm Greyhawk'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 |
| Rm Greyhawk vs. Fidelity Advisor Energy | Rm Greyhawk vs. Thrivent High Yield | Rm Greyhawk vs. American Balanced Fund | Rm Greyhawk vs. Frontier Mfg Global |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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