Correlation Between Federated Strategic and Federated Strategic
Can any of the company-specific risk be diversified away by investing in both Federated Strategic and Federated 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 Strategic and Federated Strategic 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 Federated Strategic Income, you can compare the effects of market volatilities on Federated Strategic and Federated 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 Strategic with a short position of Federated Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federated Strategic and Federated Strategic.
Diversification Opportunities for Federated Strategic and Federated Strategic
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Federated and Federated is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Federated Strategic Income and Federated Strategic Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated Strategic 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 Federated Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federated Strategic has no effect on the direction of Federated Strategic i.e., Federated Strategic and Federated Strategic go up and down completely randomly.
Pair Corralation between Federated Strategic and Federated Strategic
Assuming the 90 days horizon Federated Strategic Income is expected to generate 1.02 times more return on investment than Federated Strategic. However, Federated Strategic is 1.02 times more volatile than Federated Strategic Income. It trades about 0.08 of its potential returns per unit of risk. Federated Strategic Income is currently generating about 0.07 per unit of risk. If you would invest 814.00 in Federated Strategic Income on October 20, 2024 and sell it today you would earn a total of 4.00 from holding Federated Strategic Income or generate 0.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Federated Strategic Income vs. Federated Strategic Income
Performance |
| Timeline |
| Federated Strategic |
| Federated Strategic |
Federated Strategic and Federated Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federated Strategic and Federated Strategic
The main advantage of trading using opposite Federated Strategic and Federated Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federated Strategic position performs unexpectedly, Federated 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 Federated Strategic will offset losses from the drop in Federated Strategic's long position.| Federated Strategic vs. Dunham High Yield | Federated Strategic vs. Msift High Yield | Federated Strategic vs. Buffalo High Yield | Federated Strategic vs. City National Rochdale |
| Federated Strategic vs. Ab Small Cap | Federated Strategic vs. Df Dent Small | Federated Strategic vs. Ab Small Cap | Federated Strategic vs. Lebenthal Lisanti Small |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |