Correlation Between Federated Municipal and Comstock Capital
Can any of the company-specific risk be diversified away by investing in both Federated Municipal and Comstock Capital 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 Municipal and Comstock Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Federated Municipal Ultrashort and Comstock Capital Value, you can compare the effects of market volatilities on Federated Municipal and Comstock Capital 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 Municipal with a short position of Comstock Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federated Municipal and Comstock Capital.
Diversification Opportunities for Federated Municipal and Comstock Capital
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between FEDERATED and Comstock is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Federated Municipal Ultrashort and Comstock Capital Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Comstock Capital Value and Federated Municipal 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 Municipal Ultrashort are associated (or correlated) with Comstock Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Comstock Capital Value has no effect on the direction of Federated Municipal i.e., Federated Municipal and Comstock Capital go up and down completely randomly.
Pair Corralation between Federated Municipal and Comstock Capital
If you would invest 932.00 in Federated Municipal Ultrashort on April 4, 2025 and sell it today you would earn a total of 70.00 from holding Federated Municipal Ultrashort or generate 7.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Federated Municipal Ultrashort vs. Comstock Capital Value
Performance |
| Timeline |
| Federated Municipal |
| Comstock Capital Value |
Risk-Adjusted Performance
Good
Weak | Strong |
Federated Municipal and Comstock Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federated Municipal and Comstock Capital
The main advantage of trading using opposite Federated Municipal and Comstock Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federated Municipal position performs unexpectedly, Comstock Capital 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 Comstock Capital will offset losses from the drop in Comstock Capital's long position.| Federated Municipal vs. Omni Small Cap Value | Federated Municipal vs. Transamerica International Small | Federated Municipal vs. Eagle Small Cap | Federated Municipal vs. Needham Small Cap |
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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 Stocks Directory module to find actively traded stocks across global markets.
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