Correlation Between Federated Emerging and Strategic Allocation:
Can any of the company-specific risk be diversified away by investing in both Federated Emerging and Strategic Allocation: 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 Emerging and Strategic Allocation: into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Federated Emerging Market and Strategic Allocation Aggressive, you can compare the effects of market volatilities on Federated Emerging and Strategic Allocation: 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 Emerging with a short position of Strategic Allocation:. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federated Emerging and Strategic Allocation:.
Diversification Opportunities for Federated Emerging and Strategic Allocation:
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Federated and Strategic is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Federated Emerging Market and Strategic Allocation Aggressiv in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Strategic Allocation: and Federated Emerging 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 Emerging Market are associated (or correlated) with Strategic Allocation:. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Strategic Allocation: has no effect on the direction of Federated Emerging i.e., Federated Emerging and Strategic Allocation: go up and down completely randomly.
Pair Corralation between Federated Emerging and Strategic Allocation:
Assuming the 90 days horizon Federated Emerging Market is expected to generate 0.45 times more return on investment than Strategic Allocation:. However, Federated Emerging Market is 2.24 times less risky than Strategic Allocation:. It trades about 0.23 of its potential returns per unit of risk. Strategic Allocation Aggressive is currently generating about -0.02 per unit of risk. If you would invest 785.00 in Federated Emerging Market on November 27, 2024 and sell it today you would earn a total of 9.00 from holding Federated Emerging Market or generate 1.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Federated Emerging Market vs. Strategic Allocation Aggressiv
Performance |
| Timeline |
| Federated Emerging Market |
| Strategic Allocation: |
Federated Emerging and Strategic Allocation: Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federated Emerging and Strategic Allocation:
The main advantage of trading using opposite Federated Emerging and Strategic Allocation: positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federated Emerging position performs unexpectedly, Strategic Allocation: 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 Allocation: will offset losses from the drop in Strategic Allocation:'s long position.| Federated Emerging vs. Glg Intl Small | Federated Emerging vs. Guidemark E Fixed | Federated Emerging vs. Shelton Emerging Markets | Federated Emerging vs. Arrow Managed Futures |
| Strategic Allocation: vs. Bbh Intermediate Municipal | Strategic Allocation: vs. Ambrus Core Bond | Strategic Allocation: vs. Multisector Bond Sma | Strategic Allocation: vs. Ab Bond Inflation |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |