Correlation Between Federated Global and Blackrock Inflation
Can any of the company-specific risk be diversified away by investing in both Federated Global and Blackrock Inflation 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 Global and Blackrock Inflation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Federated Global Allocation and Blackrock Inflation Protected, you can compare the effects of market volatilities on Federated Global and Blackrock Inflation 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 Global with a short position of Blackrock Inflation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federated Global and Blackrock Inflation.
Diversification Opportunities for Federated Global and Blackrock Inflation
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between FEDERATED and Blackrock is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Federated Global Allocation and Blackrock Inflation Protected in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackrock Inflation and Federated Global 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 Global Allocation are associated (or correlated) with Blackrock Inflation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackrock Inflation has no effect on the direction of Federated Global i.e., Federated Global and Blackrock Inflation go up and down completely randomly.
Pair Corralation between Federated Global and Blackrock Inflation
Assuming the 90 days horizon Federated Global Allocation is expected to generate 2.3 times more return on investment than Blackrock Inflation. However, Federated Global is 2.3 times more volatile than Blackrock Inflation Protected. It trades about 0.07 of its potential returns per unit of risk. Blackrock Inflation Protected is currently generating about 0.07 per unit of risk. If you would invest 2,043 in Federated Global Allocation on September 5, 2025 and sell it today you would earn a total of 236.00 from holding Federated Global Allocation or generate 11.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Federated Global Allocation vs. Blackrock Inflation Protected
Performance |
| Timeline |
| Federated Global All |
| Blackrock Inflation |
Federated Global and Blackrock Inflation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federated Global and Blackrock Inflation
The main advantage of trading using opposite Federated Global and Blackrock Inflation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federated Global position performs unexpectedly, Blackrock Inflation 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 Blackrock Inflation will offset losses from the drop in Blackrock Inflation's long position.| Federated Global vs. Dreyfusstandish Global Fixed | Federated Global vs. Gmo Global Equity | Federated Global vs. Dreyfusstandish Global Fixed | Federated Global vs. Templeton Global Balanced |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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