Correlation Between Federated High and Commonwealth Global
Can any of the company-specific risk be diversified away by investing in both Federated High and Commonwealth Global 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 High and Commonwealth Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Federated High Yield and Commonwealth Global Fund, you can compare the effects of market volatilities on Federated High and Commonwealth Global 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 High with a short position of Commonwealth Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federated High and Commonwealth Global.
Diversification Opportunities for Federated High and Commonwealth Global
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Federated and Commonwealth is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Federated High Yield and Commonwealth Global Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Commonwealth Global and Federated High 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 High Yield are associated (or correlated) with Commonwealth Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Commonwealth Global has no effect on the direction of Federated High i.e., Federated High and Commonwealth Global go up and down completely randomly.
Pair Corralation between Federated High and Commonwealth Global
Assuming the 90 days horizon Federated High Yield is expected to generate 0.25 times more return on investment than Commonwealth Global. However, Federated High Yield is 4.06 times less risky than Commonwealth Global. It trades about 0.12 of its potential returns per unit of risk. Commonwealth Global Fund is currently generating about 0.02 per unit of risk. If you would invest 619.00 in Federated High Yield on April 10, 2025 and sell it today you would earn a total of 28.00 from holding Federated High Yield or generate 4.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Federated High Yield vs. Commonwealth Global Fund
Performance |
| Timeline |
| Federated High Yield |
| Commonwealth Global |
Federated High and Commonwealth Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federated High and Commonwealth Global
The main advantage of trading using opposite Federated High and Commonwealth Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federated High position performs unexpectedly, Commonwealth Global 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 Commonwealth Global will offset losses from the drop in Commonwealth Global's long position.| Federated High vs. Artisan High Income | Federated High vs. T Rowe Price | Federated High vs. The Hartford High | Federated High vs. Legg Mason Bw |
| Commonwealth Global vs. Auer Growth Fund | Commonwealth Global vs. T Rowe Price | Commonwealth Global vs. Nationwide Fund Class | Commonwealth Global vs. Tax Managed Mid Small |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |