Correlation Between Predex Funds and Federated Global
Can any of the company-specific risk be diversified away by investing in both Predex Funds 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 Predex Funds and Federated Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Predex Funds and Federated Global Allocation, you can compare the effects of market volatilities on Predex Funds 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 Predex Funds with a short position of Federated Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Predex Funds and Federated Global.
Diversification Opportunities for Predex Funds and Federated Global
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Predex and Federated is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Predex Funds 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 Predex Funds 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 Predex Funds 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 Predex Funds i.e., Predex Funds and Federated Global go up and down completely randomly.
Pair Corralation between Predex Funds and Federated Global
If you would invest 1,941 in Federated Global Allocation on November 1, 2024 and sell it today you would earn a total of 58.00 from holding Federated Global Allocation or generate 2.99% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 95.0% |
Values | Daily Returns |
Predex Funds vs. Federated Global Allocation
Performance |
Timeline |
Predex Funds |
Federated Global All |
Predex Funds and Federated Global Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Predex Funds and Federated Global
The main advantage of trading using opposite Predex Funds and Federated Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Predex Funds 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.Predex Funds vs. Nasdaq 100 Index Fund | Predex Funds vs. Scharf Global Opportunity | Predex Funds vs. Western Asset Adjustable | Predex Funds vs. Gmo Quality Fund |
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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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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