Correlation Between Federated Strategic and Queens Road
Can any of the company-specific risk be diversified away by investing in both Federated Strategic and Queens Road 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 Strategic and Queens Road into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Federated Strategic Income and Queens Road Small, you can compare the effects of market volatilities on Federated Strategic and Queens Road 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 Strategic with a short position of Queens Road. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federated Strategic and Queens Road.
Diversification Opportunities for Federated Strategic and Queens Road
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Federated and Queens is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Federated Strategic Income and Queens Road Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Queens Road Small and Federated Strategic 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 Strategic Income are associated (or correlated) with Queens Road. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Queens Road Small has no effect on the direction of Federated Strategic i.e., Federated Strategic and Queens Road go up and down completely randomly.
Pair Corralation between Federated Strategic and Queens Road
Assuming the 90 days horizon Federated Strategic Income is expected to generate 0.24 times more return on investment than Queens Road. However, Federated Strategic Income is 4.22 times less risky than Queens Road. It trades about 0.21 of its potential returns per unit of risk. Queens Road Small is currently generating about 0.04 per unit of risk. If you would invest 830.00 in Federated Strategic Income on September 13, 2024 and sell it today you would earn a total of 7.00 from holding Federated Strategic Income or generate 0.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Federated Strategic Income vs. Queens Road Small
Performance |
| Timeline |
| Federated Strategic |
| Queens Road Small |
Federated Strategic and Queens Road Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federated Strategic and Queens Road
The main advantage of trading using opposite Federated Strategic and Queens Road positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federated Strategic position performs unexpectedly, Queens Road 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 Queens Road will offset losses from the drop in Queens Road's long position.| Federated Strategic vs. Oil Gas Ultrasector | Federated Strategic vs. Calvert Global Energy | Federated Strategic vs. Firsthand Alternative Energy | Federated Strategic vs. World Energy Fund |
| Queens Road vs. Pimco Corporate Income | Queens Road vs. Fpa Flexible Fixed | Queens Road vs. Fpa Queens Road | Queens Road vs. Fpa Queens Road |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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