Correlation Between Issachar Fund and Federated Kaufmann
Can any of the company-specific risk be diversified away by investing in both Issachar Fund and Federated Kaufmann 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 Issachar Fund and Federated Kaufmann into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Issachar Fund Class and Federated Kaufmann Fund, you can compare the effects of market volatilities on Issachar Fund and Federated Kaufmann 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 Issachar Fund with a short position of Federated Kaufmann. Check out your portfolio center. Please also check ongoing floating volatility patterns of Issachar Fund and Federated Kaufmann.
Diversification Opportunities for Issachar Fund and Federated Kaufmann
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Issachar and Federated is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Issachar Fund Class and Federated Kaufmann Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated Kaufmann and Issachar Fund 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 Issachar Fund Class are associated (or correlated) with Federated Kaufmann. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federated Kaufmann has no effect on the direction of Issachar Fund i.e., Issachar Fund and Federated Kaufmann go up and down completely randomly.
Pair Corralation between Issachar Fund and Federated Kaufmann
Assuming the 90 days horizon Issachar Fund Class is expected to generate 0.98 times more return on investment than Federated Kaufmann. However, Issachar Fund Class is 1.02 times less risky than Federated Kaufmann. It trades about 0.37 of its potential returns per unit of risk. Federated Kaufmann Fund is currently generating about 0.32 per unit of risk. If you would invest 979.00 in Issachar Fund Class on September 4, 2024 and sell it today you would earn a total of 78.00 from holding Issachar Fund Class or generate 7.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Issachar Fund Class vs. Federated Kaufmann Fund
Performance |
| Timeline |
| Issachar Fund Class |
| Federated Kaufmann |
Issachar Fund and Federated Kaufmann Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Issachar Fund and Federated Kaufmann
The main advantage of trading using opposite Issachar Fund and Federated Kaufmann positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Issachar Fund position performs unexpectedly, Federated Kaufmann 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 Kaufmann will offset losses from the drop in Federated Kaufmann's long position.| Issachar Fund vs. Oppenheimer International Diversified | Issachar Fund vs. Massmutual Premier Diversified | Issachar Fund vs. Massmutual Select Diversified | Issachar Fund vs. Adams Diversified Equity |
| Federated Kaufmann vs. T Rowe Price | Federated Kaufmann vs. Artisan Thematic Fund | Federated Kaufmann vs. Issachar Fund Class | Federated Kaufmann vs. T Rowe Price |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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