Correlation Between Locorr Market and Federated Global
Can any of the company-specific risk be diversified away by investing in both Locorr Market and Federated Global 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 Locorr Market and Federated Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Locorr Market Trend and Federated Global Allocation, you can compare the effects of market volatilities on Locorr Market and Federated Global 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 Locorr Market with a short position of Federated Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Locorr Market and Federated Global.
Diversification Opportunities for Locorr Market and Federated Global
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Locorr and Federated is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Locorr Market Trend and Federated Global Allocation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated Global All and Locorr Market 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 Locorr Market Trend are associated (or correlated) with Federated Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federated Global All has no effect on the direction of Locorr Market i.e., Locorr Market and Federated Global go up and down completely randomly.
Pair Corralation between Locorr Market and Federated Global
Assuming the 90 days horizon Locorr Market Trend is expected to generate 0.98 times more return on investment than Federated Global. However, Locorr Market Trend is 1.02 times less risky than Federated Global. It trades about 0.04 of its potential returns per unit of risk. Federated Global Allocation is currently generating about -0.01 per unit of risk. If you would invest 1,025 in Locorr Market Trend on November 2, 2024 and sell it today you would earn a total of 8.00 from holding Locorr Market Trend or generate 0.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Locorr Market Trend vs. Federated Global Allocation
Performance |
| Timeline |
| Locorr Market Trend |
| Federated Global All |
Locorr Market and Federated Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Locorr Market and Federated Global
The main advantage of trading using opposite Locorr Market and Federated Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Locorr Market position performs unexpectedly, Federated Global 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 Global will offset losses from the drop in Federated Global's long position.| Locorr Market vs. Old Westbury Municipal | Locorr Market vs. Dunham Porategovernment Bond | Locorr Market vs. Alpine Ultra Short | Locorr Market vs. Fidelity California Municipal |
| Federated Global vs. Federated Max Cap Index | Federated Global vs. Federated Kaufmann Fund | Federated Global vs. Federated Strategic Income | Federated Global vs. Federated Bond 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Commodity Directory Find actively traded commodities issued by global exchanges |