Correlation Between Federated Kaufmann and Strategic Allocation:
Can any of the company-specific risk be diversified away by investing in both Federated Kaufmann 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 Kaufmann 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 Kaufmann Large and Strategic Allocation Aggressive, you can compare the effects of market volatilities on Federated Kaufmann 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 Kaufmann with a short position of Strategic Allocation:. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federated Kaufmann and Strategic Allocation:.
Diversification Opportunities for Federated Kaufmann and Strategic Allocation:
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between FEDERATED and STRATEGIC is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Federated Kaufmann Large 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 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 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 Kaufmann i.e., Federated Kaufmann and Strategic Allocation: go up and down completely randomly.
Pair Corralation between Federated Kaufmann and Strategic Allocation:
Assuming the 90 days horizon Federated Kaufmann Large is expected to generate 1.71 times more return on investment than Strategic Allocation:. However, Federated Kaufmann is 1.71 times more volatile than Strategic Allocation Aggressive. It trades about 0.2 of its potential returns per unit of risk. Strategic Allocation Aggressive is currently generating about 0.24 per unit of risk. If you would invest 1,901 in Federated Kaufmann Large on August 31, 2024 and sell it today you would earn a total of 86.00 from holding Federated Kaufmann Large or generate 4.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Federated Kaufmann Large vs. Strategic Allocation Aggressiv
Performance |
| Timeline |
| Federated Kaufmann Large |
| Strategic Allocation: |
Federated Kaufmann and Strategic Allocation: Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federated Kaufmann and Strategic Allocation:
The main advantage of trading using opposite Federated Kaufmann and Strategic Allocation: positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federated Kaufmann 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 Kaufmann vs. Europacific Growth Fund | Federated Kaufmann vs. Washington Mutual Investors | Federated Kaufmann vs. Capital World Growth | Federated Kaufmann vs. HUMANA INC |
| Strategic Allocation: vs. T Rowe Price | Strategic Allocation: vs. Barings Global Floating | Strategic Allocation: vs. Wasatch Global Opportunities | Strategic Allocation: vs. Mirova Global Green |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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