Correlation Between Federated Global and Predex Funds
Can any of the company-specific risk be diversified away by investing in both Federated Global and Predex Funds 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 Predex Funds 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 Predex Funds, you can compare the effects of market volatilities on Federated Global and Predex Funds 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 Predex Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federated Global and Predex Funds.
Diversification Opportunities for Federated Global and Predex Funds
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between FEDERATED and Predex is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Federated Global Allocation and Predex Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Predex Funds 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 Predex Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Predex Funds has no effect on the direction of Federated Global i.e., Federated Global and Predex Funds go up and down completely randomly.
Pair Corralation between Federated Global and Predex Funds
If you would invest 1,939 in Federated Global Allocation on October 20, 2024 and sell it today you would earn a total of 14.00 from holding Federated Global Allocation or generate 0.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Federated Global Allocation vs. Predex Funds
Performance |
| Timeline |
| Federated Global All |
| Predex Funds |
Federated Global and Predex Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federated Global and Predex Funds
The main advantage of trading using opposite Federated Global and Predex Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federated Global position performs unexpectedly, Predex Funds 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 Predex Funds will offset losses from the drop in Predex Funds' 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 |
| Predex Funds vs. Voya High Yield | Predex Funds vs. Jpmorgan High Yield | Predex Funds vs. Virtus High Yield | Predex Funds vs. Strategic Advisers Income |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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