Correlation Between Federated Emerging and Pioneer Mid
Can any of the company-specific risk be diversified away by investing in both Federated Emerging and Pioneer Mid 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 Emerging and Pioneer Mid into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Federated Emerging Market and Pioneer Mid Cap, you can compare the effects of market volatilities on Federated Emerging and Pioneer Mid 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 Emerging with a short position of Pioneer Mid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federated Emerging and Pioneer Mid.
Diversification Opportunities for Federated Emerging and Pioneer Mid
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Federated and Pioneer is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Federated Emerging Market and Pioneer Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pioneer Mid Cap and Federated 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 Federated Emerging Market are associated (or correlated) with Pioneer Mid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pioneer Mid Cap has no effect on the direction of Federated Emerging i.e., Federated Emerging and Pioneer Mid go up and down completely randomly.
Pair Corralation between Federated Emerging and Pioneer Mid
Assuming the 90 days horizon Federated Emerging Market is expected to generate 0.3 times more return on investment than Pioneer Mid. However, Federated Emerging Market is 3.38 times less risky than Pioneer Mid. It trades about 0.16 of its potential returns per unit of risk. Pioneer Mid Cap is currently generating about 0.04 per unit of risk. If you would invest 702.00 in Federated Emerging Market on September 2, 2025 and sell it today you would earn a total of 190.00 from holding Federated Emerging Market or generate 27.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Federated Emerging Market vs. Pioneer Mid Cap
Performance |
| Timeline |
| Federated Emerging Market |
| Pioneer Mid Cap |
Federated Emerging and Pioneer Mid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federated Emerging and Pioneer Mid
The main advantage of trading using opposite Federated Emerging and Pioneer Mid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federated Emerging position performs unexpectedly, Pioneer Mid 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 Pioneer Mid will offset losses from the drop in Pioneer Mid's long position.| Federated Emerging vs. Western Asset Inflation | Federated Emerging vs. Loomis Sayles Inflation | Federated Emerging vs. Ab Municipal Bond | Federated Emerging vs. American Funds Inflation |
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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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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