Correlation Between Federated Ultrashort and Deutsche Multi-asset
Can any of the company-specific risk be diversified away by investing in both Federated Ultrashort and Deutsche Multi-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 Ultrashort and Deutsche Multi-asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Federated Ultrashort Bond and Deutsche Multi Asset Moderate, you can compare the effects of market volatilities on Federated Ultrashort and Deutsche Multi-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 Ultrashort with a short position of Deutsche Multi-asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federated Ultrashort and Deutsche Multi-asset.
Diversification Opportunities for Federated Ultrashort and Deutsche Multi-asset
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between FEDERATED and Deutsche is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Federated Ultrashort Bond and Deutsche Multi Asset Moderate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Deutsche Multi Asset and Federated Ultrashort 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 Ultrashort Bond are associated (or correlated) with Deutsche Multi-asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Deutsche Multi Asset has no effect on the direction of Federated Ultrashort i.e., Federated Ultrashort and Deutsche Multi-asset go up and down completely randomly.
Pair Corralation between Federated Ultrashort and Deutsche Multi-asset
Assuming the 90 days horizon Federated Ultrashort is expected to generate 2.09 times less return on investment than Deutsche Multi-asset. But when comparing it to its historical volatility, Federated Ultrashort Bond is 5.33 times less risky than Deutsche Multi-asset. It trades about 0.23 of its potential returns per unit of risk. Deutsche Multi Asset Moderate is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 827.00 in Deutsche Multi Asset Moderate on August 31, 2024 and sell it today you would earn a total of 203.00 from holding Deutsche Multi Asset Moderate or generate 24.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Federated Ultrashort Bond vs. Deutsche Multi Asset Moderate
Performance |
| Timeline |
| Federated Ultrashort Bond |
| Deutsche Multi Asset |
Federated Ultrashort and Deutsche Multi-asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federated Ultrashort and Deutsche Multi-asset
The main advantage of trading using opposite Federated Ultrashort and Deutsche Multi-asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federated Ultrashort position performs unexpectedly, Deutsche Multi-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 Deutsche Multi-asset will offset losses from the drop in Deutsche Multi-asset's long position.| Federated Ultrashort vs. Virtus Global Real | Federated Ultrashort vs. Allianzgi Mid Cap Fund | Federated Ultrashort vs. Virtus Select Mlp | Federated Ultrashort vs. Aquagold International |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| 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 | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |