Correlation Between Federated Total and Siit Ultra
Can any of the company-specific risk be diversified away by investing in both Federated Total and Siit Ultra 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 Total and Siit Ultra into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Federated Total Return and Siit Ultra Short, you can compare the effects of market volatilities on Federated Total and Siit Ultra 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 Total with a short position of Siit Ultra. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federated Total and Siit Ultra.
Diversification Opportunities for Federated Total and Siit Ultra
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Federated and Siit is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Federated Total Return and Siit Ultra Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siit Ultra Short and Federated Total 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 Total Return are associated (or correlated) with Siit Ultra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siit Ultra Short has no effect on the direction of Federated Total i.e., Federated Total and Siit Ultra go up and down completely randomly.
Pair Corralation between Federated Total and Siit Ultra
Assuming the 90 days horizon Federated Total is expected to generate 1.02 times less return on investment than Siit Ultra. In addition to that, Federated Total is 3.74 times more volatile than Siit Ultra Short. It trades about 0.06 of its total potential returns per unit of risk. Siit Ultra Short is currently generating about 0.22 per unit of volatility. If you would invest 927.00 in Siit Ultra Short on August 29, 2024 and sell it today you would earn a total of 69.00 from holding Siit Ultra Short or generate 7.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Federated Total Return vs. Siit Ultra Short
Performance |
| Timeline |
| Federated Total Return |
| Siit Ultra Short |
Federated Total and Siit Ultra Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federated Total and Siit Ultra
The main advantage of trading using opposite Federated Total and Siit Ultra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federated Total position performs unexpectedly, Siit Ultra 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 Siit Ultra will offset losses from the drop in Siit Ultra's long position.| Federated Total vs. Angel Oak Ultrashort | Federated Total vs. Siit Ultra Short | Federated Total vs. Rbc Short Duration | Federated Total vs. Federated Short Intermediate Duration |
| Siit Ultra vs. Dws Government Money | Siit Ultra vs. T Rowe Price | Siit Ultra vs. Blrc Sgy Mnp | Siit Ultra vs. Angel Oak Financial |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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