Correlation Between Ebang International and Federated Mdt
Can any of the company-specific risk be diversified away by investing in both Ebang International and Federated Mdt 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 Ebang International and Federated Mdt into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ebang International Holdings and Federated Mdt Large, you can compare the effects of market volatilities on Ebang International and Federated Mdt 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 Ebang International with a short position of Federated Mdt. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ebang International and Federated Mdt.
Diversification Opportunities for Ebang International and Federated Mdt
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ebang and Federated is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Ebang International Holdings and Federated Mdt Large in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated Mdt Large and Ebang International 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 Ebang International Holdings are associated (or correlated) with Federated Mdt. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federated Mdt Large has no effect on the direction of Ebang International i.e., Ebang International and Federated Mdt go up and down completely randomly.
Pair Corralation between Ebang International and Federated Mdt
Given the investment horizon of 90 days Ebang International Holdings is expected to generate 9.84 times more return on investment than Federated Mdt. However, Ebang International is 9.84 times more volatile than Federated Mdt Large. It trades about 0.04 of its potential returns per unit of risk. Federated Mdt Large is currently generating about 0.16 per unit of risk. If you would invest 368.00 in Ebang International Holdings on June 9, 2025 and sell it today you would earn a total of 20.00 from holding Ebang International Holdings or generate 5.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ebang International Holdings vs. Federated Mdt Large
Performance |
| Timeline |
| Ebang International |
| Federated Mdt Large |
Ebang International and Federated Mdt Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ebang International and Federated Mdt
The main advantage of trading using opposite Ebang International and Federated Mdt positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ebang International position performs unexpectedly, Federated Mdt 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 Mdt will offset losses from the drop in Federated Mdt's long position.| Ebang International vs. Canaan Inc | Ebang International vs. 3D Systems | Ebang International vs. NetApp Inc | Ebang International vs. Rigetti Computing |
| Federated Mdt vs. Western Asset Short | Federated Mdt vs. Metropolitan West Ultra | Federated Mdt vs. Balanced Strategy Fund | Federated Mdt vs. Ep Emerging Markets |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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