Correlation Between Puyi and Federated Premier
Can any of the company-specific risk be diversified away by investing in both Puyi and Federated Premier 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 Puyi and Federated Premier into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Puyi Inc ADR and Federated Premier Municipal, you can compare the effects of market volatilities on Puyi and Federated Premier 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 Puyi with a short position of Federated Premier. Check out your portfolio center. Please also check ongoing floating volatility patterns of Puyi and Federated Premier.
Diversification Opportunities for Puyi and Federated Premier
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Puyi and Federated is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Puyi Inc ADR and Federated Premier Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated Premier and Puyi 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 Puyi Inc ADR are associated (or correlated) with Federated Premier. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federated Premier has no effect on the direction of Puyi i.e., Puyi and Federated Premier go up and down completely randomly.
Pair Corralation between Puyi and Federated Premier
If you would invest 620.00 in Puyi Inc ADR on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Puyi Inc ADR or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Puyi Inc ADR vs. Federated Premier Municipal
Performance |
| Timeline |
| Puyi Inc ADR |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Federated Premier |
Puyi and Federated Premier Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Puyi and Federated Premier
The main advantage of trading using opposite Puyi and Federated Premier positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Puyi position performs unexpectedly, Federated Premier 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 Premier will offset losses from the drop in Federated Premier's long position.| Puyi vs. Eaton Vance National | Puyi vs. Invesco High Income | Puyi vs. Blackrock Muniholdings Ny | Puyi vs. Nuveen California Select |
| Federated Premier vs. DTF Tax Free | Federated Premier vs. MFS High Yield | Federated Premier vs. MFS High Income | Federated Premier vs. John Hancock Income |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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