Correlation Between Federated Global and Icon Information
Can any of the company-specific risk be diversified away by investing in both Federated Global and Icon Information 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 Icon Information 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 Icon Information Technology, you can compare the effects of market volatilities on Federated Global and Icon Information 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 Icon Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federated Global and Icon Information.
Diversification Opportunities for Federated Global and Icon Information
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between FEDERATED and Icon is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Federated Global Allocation and Icon Information Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Icon Information Tec 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 Icon Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Icon Information Tec has no effect on the direction of Federated Global i.e., Federated Global and Icon Information go up and down completely randomly.
Pair Corralation between Federated Global and Icon Information
Assuming the 90 days horizon Federated Global Allocation is expected to generate 0.52 times more return on investment than Icon Information. However, Federated Global Allocation is 1.93 times less risky than Icon Information. It trades about 0.05 of its potential returns per unit of risk. Icon Information Technology is currently generating about 0.01 per unit of risk. If you would invest 1,706 in Federated Global Allocation on October 14, 2024 and sell it today you would earn a total of 240.00 from holding Federated Global Allocation or generate 14.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Federated Global Allocation vs. Icon Information Technology
Performance |
| Timeline |
| Federated Global All |
| Icon Information Tec |
Federated Global and Icon Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federated Global and Icon Information
The main advantage of trading using opposite Federated Global and Icon Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federated Global position performs unexpectedly, Icon Information 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 Icon Information will offset losses from the drop in Icon Information'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 |
| Icon Information vs. Pnc Balanced Allocation | Icon Information vs. Tax Managed Large Cap | Icon Information vs. Old Westbury Large | Icon Information 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 CEOs Directory module to screen CEOs from public companies around the world.
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