Correlation Between Federated Investors and P10
Can any of the company-specific risk be diversified away by investing in both Federated Investors and P10 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 Investors and P10 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Federated Investors B and P10 Inc, you can compare the effects of market volatilities on Federated Investors and P10 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 Investors with a short position of P10. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federated Investors and P10.
Diversification Opportunities for Federated Investors and P10
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Federated and P10 is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Federated Investors B and P10 Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on P10 Inc and Federated Investors 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 Investors B are associated (or correlated) with P10. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of P10 Inc has no effect on the direction of Federated Investors i.e., Federated Investors and P10 go up and down completely randomly.
Pair Corralation between Federated Investors and P10
Considering the 90-day investment horizon Federated Investors B is expected to generate 0.68 times more return on investment than P10. However, Federated Investors B is 1.47 times less risky than P10. It trades about -0.09 of its potential returns per unit of risk. P10 Inc is currently generating about -0.18 per unit of risk. If you would invest 5,336 in Federated Investors B on August 15, 2025 and sell it today you would lose (416.00) from holding Federated Investors B or give up 7.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Federated Investors B vs. P10 Inc
Performance |
| Timeline |
| Federated Investors |
| P10 Inc |
Federated Investors and P10 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federated Investors and P10
The main advantage of trading using opposite Federated Investors and P10 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federated Investors position performs unexpectedly, P10 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 P10 will offset losses from the drop in P10's long position.| Federated Investors vs. Golub Capital BDC | Federated Investors vs. AllianceBernstein Holding LP | Federated Investors vs. Cohen Steers | Federated Investors vs. Artisan Partners Asset |
| P10 vs. MidCap Financial Investment | P10 vs. Capital Southwest | P10 vs. Horizon Technology Finance | P10 vs. Goldman Sachs BDC |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |