Correlation Between Federated Kaufmann and Federated International
Can any of the company-specific risk be diversified away by investing in both Federated Kaufmann and Federated International 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 Kaufmann and Federated International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Federated Kaufmann Fund and Federated International Leaders, you can compare the effects of market volatilities on Federated Kaufmann and Federated International 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 Kaufmann with a short position of Federated International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federated Kaufmann and Federated International.
Diversification Opportunities for Federated Kaufmann and Federated International
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Federated and Federated is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Federated Kaufmann Fund and Federated International Leader in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated International and Federated Kaufmann 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 Kaufmann Fund are associated (or correlated) with Federated International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federated International has no effect on the direction of Federated Kaufmann i.e., Federated Kaufmann and Federated International go up and down completely randomly.
Pair Corralation between Federated Kaufmann and Federated International
Assuming the 90 days horizon Federated Kaufmann Fund is expected to generate 1.11 times more return on investment than Federated International. However, Federated Kaufmann is 1.11 times more volatile than Federated International Leaders. It trades about 0.08 of its potential returns per unit of risk. Federated International Leaders is currently generating about 0.01 per unit of risk. If you would invest 491.00 in Federated Kaufmann Fund on August 31, 2024 and sell it today you would earn a total of 160.00 from holding Federated Kaufmann Fund or generate 32.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Federated Kaufmann Fund vs. Federated International Leader
Performance |
| Timeline |
| Federated Kaufmann |
| Federated International |
Federated Kaufmann and Federated International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federated Kaufmann and Federated International
The main advantage of trading using opposite Federated Kaufmann and Federated International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federated Kaufmann position performs unexpectedly, Federated International 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 Federated International will offset losses from the drop in Federated International's long position.| Federated Kaufmann vs. Dreyfusstandish Global Fixed | Federated Kaufmann vs. Ab Bond Inflation | Federated Kaufmann vs. Maryland Tax Free Bond | Federated Kaufmann vs. Artisan High Income |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |