Correlation Between Federated Short-intermedia and Strategic Asset
Can any of the company-specific risk be diversified away by investing in both Federated Short-intermedia and Strategic Asset 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 Short-intermedia and Strategic Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Federated Short Intermediate Duration and Strategic Asset Management, you can compare the effects of market volatilities on Federated Short-intermedia and Strategic Asset 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 Short-intermedia with a short position of Strategic Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federated Short-intermedia and Strategic Asset.
Diversification Opportunities for Federated Short-intermedia and Strategic Asset
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between FEDERATED and Strategic is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Federated Short Intermediate D and Strategic Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Strategic Asset Mana and Federated Short-intermedia 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 Short Intermediate Duration are associated (or correlated) with Strategic Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Strategic Asset Mana has no effect on the direction of Federated Short-intermedia i.e., Federated Short-intermedia and Strategic Asset go up and down completely randomly.
Pair Corralation between Federated Short-intermedia and Strategic Asset
Assuming the 90 days horizon Federated Short-intermedia is expected to generate 4.48 times less return on investment than Strategic Asset. But when comparing it to its historical volatility, Federated Short Intermediate Duration is 3.25 times less risky than Strategic Asset. It trades about 0.15 of its potential returns per unit of risk. Strategic Asset Management is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 1,715 in Strategic Asset Management on August 29, 2024 and sell it today you would earn a total of 37.00 from holding Strategic Asset Management or generate 2.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Federated Short Intermediate D vs. Strategic Asset Management
Performance |
| Timeline |
| Federated Short-intermedia |
| Strategic Asset Mana |
Federated Short-intermedia and Strategic Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federated Short-intermedia and Strategic Asset
The main advantage of trading using opposite Federated Short-intermedia and Strategic Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federated Short-intermedia position performs unexpectedly, Strategic Asset 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 Strategic Asset will offset losses from the drop in Strategic Asset's long position.The idea behind Federated Short Intermediate Duration and Strategic Asset Management pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| Strategic Asset vs. Federated Short Intermediate Duration | Strategic Asset vs. Angel Oak Ultrashort | Strategic Asset vs. Sterling Capital Short | Strategic Asset vs. Ab Select Longshort |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |