Correlation Between Federated Mdt and Hood River
Can any of the company-specific risk be diversified away by investing in both Federated Mdt and Hood River 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 Mdt and Hood River into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Federated Mdt Mid Cap and Hood River Small Cap, you can compare the effects of market volatilities on Federated Mdt and Hood River 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 Mdt with a short position of Hood River. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federated Mdt and Hood River.
Diversification Opportunities for Federated Mdt and Hood River
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Federated and Hood is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Federated Mdt Mid Cap and Hood River Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hood River Small and Federated Mdt 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 Mdt Mid Cap are associated (or correlated) with Hood River. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hood River Small has no effect on the direction of Federated Mdt i.e., Federated Mdt and Hood River go up and down completely randomly.
Pair Corralation between Federated Mdt and Hood River
Assuming the 90 days horizon Federated Mdt is expected to generate 2.08 times less return on investment than Hood River. But when comparing it to its historical volatility, Federated Mdt Mid Cap is 1.74 times less risky than Hood River. It trades about 0.27 of its potential returns per unit of risk. Hood River Small Cap is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 7,340 in Hood River Small Cap on June 11, 2025 and sell it today you would earn a total of 626.00 from holding Hood River Small Cap or generate 8.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Federated Mdt Mid Cap vs. Hood River Small Cap
Performance |
| Timeline |
| Federated Mdt Mid |
| Hood River Small |
Federated Mdt and Hood River Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federated Mdt and Hood River
The main advantage of trading using opposite Federated Mdt and Hood River positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federated Mdt position performs unexpectedly, Hood River 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 Hood River will offset losses from the drop in Hood River's long position.| Federated Mdt vs. Fidelity Small Cap | Federated Mdt vs. Federated Mdt Large | Federated Mdt vs. Fidelity Advisor Mid | Federated Mdt vs. Congress Mid Cap |
| Hood River vs. Hood River Small Cap | Hood River vs. Hood River Small Cap | Hood River vs. Thrivent Small Cap | Hood River vs. Baron Discovery Fund |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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