Correlation Between Federated Kaufmann and Growth Fund
Can any of the company-specific risk be diversified away by investing in both Federated Kaufmann and Growth Fund 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 Growth Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Federated Kaufmann Large and Growth Fund Of, you can compare the effects of market volatilities on Federated Kaufmann and Growth Fund 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 Growth Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federated Kaufmann and Growth Fund.
Diversification Opportunities for Federated Kaufmann and Growth Fund
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Federated and Growth is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Federated Kaufmann Large and Growth Fund Of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Growth Fund 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 Large are associated (or correlated) with Growth Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Growth Fund has no effect on the direction of Federated Kaufmann i.e., Federated Kaufmann and Growth Fund go up and down completely randomly.
Pair Corralation between Federated Kaufmann and Growth Fund
Assuming the 90 days horizon Federated Kaufmann Large is expected to generate 0.42 times more return on investment than Growth Fund. However, Federated Kaufmann Large is 2.38 times less risky than Growth Fund. It trades about -0.03 of its potential returns per unit of risk. Growth Fund Of is currently generating about -0.16 per unit of risk. If you would invest 1,913 in Federated Kaufmann Large on October 9, 2024 and sell it today you would lose (16.00) from holding Federated Kaufmann Large or give up 0.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Federated Kaufmann Large vs. Growth Fund Of
Performance |
| Timeline |
| Federated Kaufmann Large |
| Growth Fund |
Federated Kaufmann and Growth Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federated Kaufmann and Growth Fund
The main advantage of trading using opposite Federated Kaufmann and Growth Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federated Kaufmann position performs unexpectedly, Growth Fund 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 Growth Fund will offset losses from the drop in Growth Fund's long position.| Federated Kaufmann vs. Federated Strategic Value | Federated Kaufmann vs. Federated Kaufmann Small | Federated Kaufmann vs. Federated International Leaders | Federated Kaufmann vs. Federated Mdt Large |
| Growth Fund vs. Realestaterealreturn Strategy Fund | Growth Fund vs. John Hancock Emerging | Growth Fund vs. Mid Cap 15x Strategy | Growth Fund vs. Balanced Strategy Fund |
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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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