Correlation Between Federated Pennsylvania and Hussman Strategic
Can any of the company-specific risk be diversified away by investing in both Federated Pennsylvania and Hussman 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 Federated Pennsylvania and Hussman Strategic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Federated Pennsylvania Municipal and Hussman Strategic Growth, you can compare the effects of market volatilities on Federated Pennsylvania and Hussman 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 Federated Pennsylvania with a short position of Hussman Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federated Pennsylvania and Hussman Strategic.
Diversification Opportunities for Federated Pennsylvania and Hussman Strategic
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between FEDERATED and Hussman is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Federated Pennsylvania Municip and Hussman Strategic Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hussman Strategic Growth and Federated Pennsylvania 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 Pennsylvania Municipal are associated (or correlated) with Hussman Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hussman Strategic Growth has no effect on the direction of Federated Pennsylvania i.e., Federated Pennsylvania and Hussman Strategic go up and down completely randomly.
Pair Corralation between Federated Pennsylvania and Hussman Strategic
Assuming the 90 days horizon Federated Pennsylvania Municipal is expected to generate 0.38 times more return on investment than Hussman Strategic. However, Federated Pennsylvania Municipal is 2.65 times less risky than Hussman Strategic. It trades about 0.07 of its potential returns per unit of risk. Hussman Strategic Growth is currently generating about -0.06 per unit of risk. If you would invest 945.00 in Federated Pennsylvania Municipal on September 4, 2024 and sell it today you would earn a total of 71.00 from holding Federated Pennsylvania Municipal or generate 7.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Federated Pennsylvania Municip vs. Hussman Strategic Growth
Performance |
| Timeline |
| Federated Pennsylvania |
| Hussman Strategic Growth |
Federated Pennsylvania and Hussman Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federated Pennsylvania and Hussman Strategic
The main advantage of trading using opposite Federated Pennsylvania and Hussman Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federated Pennsylvania position performs unexpectedly, Hussman 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 Hussman Strategic will offset losses from the drop in Hussman Strategic's long position.| Federated Pennsylvania vs. Federated Emerging Market | Federated Pennsylvania vs. Federated Mdt All | Federated Pennsylvania vs. Federated Mdt Balanced | Federated Pennsylvania vs. Federated Global Allocation |
| Hussman Strategic vs. Hussman Strategic Allocation | Hussman Strategic vs. Hussman Strategic Dividend | Hussman Strategic vs. Hussman Strategic Total | Hussman Strategic vs. Prudential Jennison International |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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