Correlation Between Federated Global and Vy(r) Baron
Can any of the company-specific risk be diversified away by investing in both Federated Global and Vy(r) Baron 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 Vy(r) Baron 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 Vy Baron Growth, you can compare the effects of market volatilities on Federated Global and Vy(r) Baron 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 Vy(r) Baron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federated Global and Vy(r) Baron.
Diversification Opportunities for Federated Global and Vy(r) Baron
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between FEDERATED and Vy(r) is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Federated Global Allocation and Vy Baron Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vy Baron Growth 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 Vy(r) Baron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vy Baron Growth has no effect on the direction of Federated Global i.e., Federated Global and Vy(r) Baron go up and down completely randomly.
Pair Corralation between Federated Global and Vy(r) Baron
Assuming the 90 days horizon Federated Global Allocation is expected to generate 0.5 times more return on investment than Vy(r) Baron. However, Federated Global Allocation is 2.0 times less risky than Vy(r) Baron. It trades about 0.05 of its potential returns per unit of risk. Vy Baron Growth is currently generating about 0.0 per unit of risk. If you would invest 1,700 in Federated Global Allocation on October 11, 2024 and sell it today you would earn a total of 246.00 from holding Federated Global Allocation or generate 14.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Federated Global Allocation vs. Vy Baron Growth
Performance |
| Timeline |
| Federated Global All |
| Vy Baron Growth |
Federated Global and Vy(r) Baron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federated Global and Vy(r) Baron
The main advantage of trading using opposite Federated Global and Vy(r) Baron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federated Global position performs unexpectedly, Vy(r) Baron 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 Vy(r) Baron will offset losses from the drop in Vy(r) Baron's long position.| Federated Global vs. Federated Max Cap Index | Federated Global vs. Federated Kaufmann Fund | Federated Global vs. Federated Strategic Income | Federated Global vs. Federated Bond Fund |
| Vy(r) Baron vs. Siit Large Cap | Vy(r) Baron vs. Touchstone Large Cap | Vy(r) Baron vs. Calvert Moderate Allocation | Vy(r) Baron vs. Federated Global Allocation |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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