Correlation Between Payden Emerging and Payden Floating
Can any of the company-specific risk be diversified away by investing in both Payden Emerging and Payden Floating 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 Payden Emerging and Payden Floating into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Payden Emerging Markets and Payden Floating Rate, you can compare the effects of market volatilities on Payden Emerging and Payden Floating 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 Payden Emerging with a short position of Payden Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of Payden Emerging and Payden Floating.
Diversification Opportunities for Payden Emerging and Payden Floating
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Payden and Payden is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Payden Emerging Markets and Payden Floating Rate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Payden Floating Rate and Payden Emerging 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 Payden Emerging Markets are associated (or correlated) with Payden Floating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Payden Floating Rate has no effect on the direction of Payden Emerging i.e., Payden Emerging and Payden Floating go up and down completely randomly.
Pair Corralation between Payden Emerging and Payden Floating
If you would invest (100.00) in Payden Floating Rate on August 31, 2024 and sell it today you would earn a total of 100.00 from holding Payden Floating Rate or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Payden Emerging Markets vs. Payden Floating Rate
Performance |
| Timeline |
| Payden Emerging Markets |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Payden Floating Rate |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Payden Emerging and Payden Floating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Payden Emerging and Payden Floating
The main advantage of trading using opposite Payden Emerging and Payden Floating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Payden Emerging position performs unexpectedly, Payden Floating 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 Payden Floating will offset losses from the drop in Payden Floating's long position.| Payden Emerging vs. Ishares Municipal Bond | Payden Emerging vs. Ab Impact Municipal | Payden Emerging vs. Gamco Global Telecommunications | Payden Emerging vs. The National Tax Free |
| Payden Floating vs. Pace High Yield | Payden Floating vs. Artisan High Income | Payden Floating vs. Ab Global Risk | Payden Floating vs. Pioneer 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Global Correlations Find global opportunities by holding instruments from different markets |