Correlation Between Delaware Emerging and Federated Emerging
Can any of the company-specific risk be diversified away by investing in both Delaware Emerging and Federated Emerging 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 Delaware Emerging and Federated Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Delaware Emerging Markets and Federated Emerging Market, you can compare the effects of market volatilities on Delaware Emerging and Federated Emerging 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 Delaware Emerging with a short position of Federated Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delaware Emerging and Federated Emerging.
Diversification Opportunities for Delaware Emerging and Federated Emerging
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Delaware and Federated is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Delaware Emerging Markets and Federated Emerging Market in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated Emerging Market and Delaware 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 Delaware Emerging Markets are associated (or correlated) with Federated Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federated Emerging Market has no effect on the direction of Delaware Emerging i.e., Delaware Emerging and Federated Emerging go up and down completely randomly.
Pair Corralation between Delaware Emerging and Federated Emerging
Assuming the 90 days horizon Delaware Emerging is expected to generate 1.97 times less return on investment than Federated Emerging. But when comparing it to its historical volatility, Delaware Emerging Markets is 2.1 times less risky than Federated Emerging. It trades about 0.36 of its potential returns per unit of risk. Federated Emerging Market is currently generating about 0.34 of returns per unit of risk over similar time horizon. If you would invest 833.00 in Federated Emerging Market on July 21, 2025 and sell it today you would earn a total of 43.00 from holding Federated Emerging Market or generate 5.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Delaware Emerging Markets vs. Federated Emerging Market
Performance |
| Timeline |
| Delaware Emerging Markets |
| Federated Emerging Market |
Delaware Emerging and Federated Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Delaware Emerging and Federated Emerging
The main advantage of trading using opposite Delaware Emerging and Federated Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delaware Emerging position performs unexpectedly, Federated Emerging 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 Emerging will offset losses from the drop in Federated Emerging's long position.| Delaware Emerging vs. Six Circles Credit | Delaware Emerging vs. Strategic Advisers Income | Delaware Emerging vs. Msift High Yield | Delaware Emerging vs. Nuveen 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 Stocks Directory module to find actively traded stocks across global markets.
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