Correlation Between Federated Mdt and Stet Intermediate
Can any of the company-specific risk be diversified away by investing in both Federated Mdt and Stet Intermediate 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 Stet Intermediate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Federated Mdt Large and Stet Intermediate Term, you can compare the effects of market volatilities on Federated Mdt and Stet Intermediate 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 Stet Intermediate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federated Mdt and Stet Intermediate.
Diversification Opportunities for Federated Mdt and Stet Intermediate
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Federated and Stet is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Federated Mdt Large and Stet Intermediate Term in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stet Intermediate Term 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 Large are associated (or correlated) with Stet Intermediate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stet Intermediate Term has no effect on the direction of Federated Mdt i.e., Federated Mdt and Stet Intermediate go up and down completely randomly.
Pair Corralation between Federated Mdt and Stet Intermediate
Assuming the 90 days horizon Federated Mdt Large is expected to generate 14.65 times more return on investment than Stet Intermediate. However, Federated Mdt is 14.65 times more volatile than Stet Intermediate Term. It trades about 0.17 of its potential returns per unit of risk. Stet Intermediate Term is currently generating about 0.22 per unit of risk. If you would invest 3,126 in Federated Mdt Large on October 7, 2025 and sell it today you would earn a total of 358.00 from holding Federated Mdt Large or generate 11.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Federated Mdt Large vs. Stet Intermediate Term
Performance |
| Timeline |
| Federated Mdt Large |
| Stet Intermediate Term |
Federated Mdt and Stet Intermediate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federated Mdt and Stet Intermediate
The main advantage of trading using opposite Federated Mdt and Stet Intermediate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federated Mdt position performs unexpectedly, Stet Intermediate 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 Stet Intermediate will offset losses from the drop in Stet Intermediate's long position.| Federated Mdt vs. Federated Mdt Large | Federated Mdt vs. Federated Mdt Large | Federated Mdt vs. BlackRock Science Tech | Federated Mdt vs. Gabelli Dividend Income |
| Stet Intermediate vs. Fidelity Sai Conservative | Stet Intermediate vs. Federated Mdt Small | Stet Intermediate vs. Sit Emerging Markets | Stet Intermediate vs. Jpmorgan International Unconstrained |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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