Correlation Between Floating Rate and 91159HHZ6
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By analyzing existing cross correlation between Floating Rate Fund and US BANCORP MTN, you can compare the effects of market volatilities on Floating Rate and 91159HHZ6 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 Floating Rate with a short position of 91159HHZ6. Check out your portfolio center. Please also check ongoing floating volatility patterns of Floating Rate and 91159HHZ6.
Diversification Opportunities for Floating Rate and 91159HHZ6
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Floating and 91159HHZ6 is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Floating Rate Fund and US BANCORP MTN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on US BANCORP MTN and Floating Rate 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 Floating Rate Fund are associated (or correlated) with 91159HHZ6. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of US BANCORP MTN has no effect on the direction of Floating Rate i.e., Floating Rate and 91159HHZ6 go up and down completely randomly.
Pair Corralation between Floating Rate and 91159HHZ6
Assuming the 90 days horizon Floating Rate Fund is expected to generate 1.45 times more return on investment than 91159HHZ6. However, Floating Rate is 1.45 times more volatile than US BANCORP MTN. It trades about 0.24 of its potential returns per unit of risk. US BANCORP MTN is currently generating about 0.12 per unit of risk. If you would invest 728.00 in Floating Rate Fund on November 9, 2024 and sell it today you would earn a total of 88.00 from holding Floating Rate Fund or generate 12.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.63% |
| Values | Daily Returns |
Floating Rate Fund vs. US BANCORP MTN
Performance |
| Timeline |
| Floating Rate |
| US BANCORP MTN |
Floating Rate and 91159HHZ6 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Floating Rate and 91159HHZ6
The main advantage of trading using opposite Floating Rate and 91159HHZ6 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Floating Rate position performs unexpectedly, 91159HHZ6 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 91159HHZ6 will offset losses from the drop in 91159HHZ6's long position.| Floating Rate vs. Blrc Sgy Mnp | Floating Rate vs. Touchstone Funds Group | Floating Rate vs. Growth Fund Of | Floating Rate vs. Issachar Fund Class |
| 91159HHZ6 vs. AEP TEX INC | 91159HHZ6 vs. US BANK NATIONAL | 91159HHZ6 vs. Xalles Holdings | 91159HHZ6 vs. TuanChe ADR |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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