Correlation Between Rbb Fund and Federated Strategic
Can any of the company-specific risk be diversified away by investing in both Rbb Fund and Federated Strategic 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 Rbb Fund and Federated Strategic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rbb Fund and Federated Strategic Value, you can compare the effects of market volatilities on Rbb Fund and Federated Strategic 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 Rbb Fund with a short position of Federated Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rbb Fund and Federated Strategic.
Diversification Opportunities for Rbb Fund and Federated Strategic
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Rbb and Federated is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Rbb Fund and Federated Strategic Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated Strategic Value and Rbb 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 Rbb Fund are associated (or correlated) with Federated Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federated Strategic Value has no effect on the direction of Rbb Fund i.e., Rbb Fund and Federated Strategic go up and down completely randomly.
Pair Corralation between Rbb Fund and Federated Strategic
Assuming the 90 days horizon Rbb Fund is expected to generate 1.51 times less return on investment than Federated Strategic. But when comparing it to its historical volatility, Rbb Fund is 3.52 times less risky than Federated Strategic. It trades about 0.09 of its potential returns per unit of risk. Federated Strategic Value is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 537.00 in Federated Strategic Value on September 12, 2024 and sell it today you would earn a total of 75.00 from holding Federated Strategic Value or generate 13.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rbb Fund vs. Federated Strategic Value
Performance |
| Timeline |
| Rbb Fund |
| Federated Strategic Value |
Rbb Fund and Federated Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rbb Fund and Federated Strategic
The main advantage of trading using opposite Rbb Fund and Federated Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rbb Fund position performs unexpectedly, Federated Strategic 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 Strategic will offset losses from the drop in Federated Strategic's long position.| Rbb Fund vs. Rationalpier 88 Convertible | Rbb Fund vs. Advent Claymore Convertible | Rbb Fund vs. Virtus Convertible | Rbb Fund vs. Absolute Convertible Arbitrage |
| Federated Strategic vs. Artisan High Income | Federated Strategic vs. Prudential High Yield | Federated Strategic vs. Pax High Yield | Federated Strategic vs. Msift High Yield |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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