Correlation Between Federated Kaufmann and Alternative Asset
Can any of the company-specific risk be diversified away by investing in both Federated Kaufmann and Alternative 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 Kaufmann and Alternative Asset 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 Alternative Asset Allocation, you can compare the effects of market volatilities on Federated Kaufmann and Alternative 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 Kaufmann with a short position of Alternative Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federated Kaufmann and Alternative Asset.
Diversification Opportunities for Federated Kaufmann and Alternative Asset
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Federated and Alternative is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Federated Kaufmann Large and Alternative Asset Allocation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alternative Asset 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 Alternative Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alternative Asset has no effect on the direction of Federated Kaufmann i.e., Federated Kaufmann and Alternative Asset go up and down completely randomly.
Pair Corralation between Federated Kaufmann and Alternative Asset
Assuming the 90 days horizon Federated Kaufmann Large is expected to under-perform the Alternative Asset. In addition to that, Federated Kaufmann is 5.36 times more volatile than Alternative Asset Allocation. It trades about -0.19 of its total potential returns per unit of risk. Alternative Asset Allocation is currently generating about 0.11 per unit of volatility. If you would invest 1,612 in Alternative Asset Allocation on November 29, 2024 and sell it today you would earn a total of 6.00 from holding Alternative Asset Allocation or generate 0.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Federated Kaufmann Large vs. Alternative Asset Allocation
Performance |
| Timeline |
| Federated Kaufmann Large |
| Alternative Asset |
Federated Kaufmann and Alternative Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federated Kaufmann and Alternative Asset
The main advantage of trading using opposite Federated Kaufmann and Alternative Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federated Kaufmann position performs unexpectedly, Alternative 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 Alternative Asset will offset losses from the drop in Alternative Asset's long position.| Federated Kaufmann vs. Fisher Large Cap | Federated Kaufmann vs. Ab Large Cap | Federated Kaufmann vs. Profunds Large Cap Growth | Federated Kaufmann vs. Fidelity Large Cap |
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 Stocks Directory module to find actively traded stocks across global markets.
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