Correlation Between Federated Mdt and Voya Index
Can any of the company-specific risk be diversified away by investing in both Federated Mdt and Voya Index 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 Mdt and Voya Index into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Federated Mdt Large and Voya Index Solution, you can compare the effects of market volatilities on Federated Mdt and Voya Index 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 Mdt with a short position of Voya Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federated Mdt and Voya Index.
Diversification Opportunities for Federated Mdt and Voya Index
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between FEDERATED and Voya is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Federated Mdt Large and Voya Index Solution in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Index Solution and Federated Mdt 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 Mdt Large are associated (or correlated) with Voya Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Index Solution has no effect on the direction of Federated Mdt i.e., Federated Mdt and Voya Index go up and down completely randomly.
Pair Corralation between Federated Mdt and Voya Index
Assuming the 90 days horizon Federated Mdt Large is expected to generate 1.72 times more return on investment than Voya Index. However, Federated Mdt is 1.72 times more volatile than Voya Index Solution. It trades about 0.43 of its potential returns per unit of risk. Voya Index Solution is currently generating about 0.32 per unit of risk. If you would invest 3,497 in Federated Mdt Large on September 4, 2024 and sell it today you would earn a total of 255.00 from holding Federated Mdt Large or generate 7.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Federated Mdt Large vs. Voya Index Solution
Performance |
| Timeline |
| Federated Mdt Large |
| Voya Index Solution |
Federated Mdt and Voya Index Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federated Mdt and Voya Index
The main advantage of trading using opposite Federated Mdt and Voya Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federated Mdt position performs unexpectedly, Voya Index 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 Voya Index will offset losses from the drop in Voya Index's long position.| Federated Mdt vs. Federated Max Cap Index | Federated Mdt vs. Federated Mdt Mid Cap | Federated Mdt vs. Federated Max Cap Index | Federated Mdt vs. Federated Global Allocation |
| Voya Index vs. Voya Bond Index | Voya Index vs. Voya Bond Index | Voya Index vs. Voya Limited Maturity | Voya Index vs. Voya Limited Maturity |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |