Correlation Between Federated Short and Federated
Can any of the company-specific risk be diversified away by investing in both Federated Short and Federated 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 Short and Federated into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Federated Short Term Income and Federated Gov Sec, you can compare the effects of market volatilities on Federated Short and Federated 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 Short with a short position of Federated. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federated Short and Federated.
Diversification Opportunities for Federated Short and Federated
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Federated and Federated is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Federated Short Term Income and Federated Gov Sec in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated Gov Sec and Federated Short 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 Short Term Income are associated (or correlated) with Federated. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federated Gov Sec has no effect on the direction of Federated Short i.e., Federated Short and Federated go up and down completely randomly.
Pair Corralation between Federated Short and Federated
If you would invest 840.00 in Federated Short Term Income on April 19, 2025 and sell it today you would earn a total of 12.00 from holding Federated Short Term Income or generate 1.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 1.64% |
| Values | Daily Returns |
Federated Short Term Income vs. Federated Gov Sec
Performance |
| Timeline |
| Federated Short Term |
| Federated Gov Sec |
Risk-Adjusted Performance
Modest
Weak | Strong |
Federated Short and Federated Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federated Short and Federated
The main advantage of trading using opposite Federated Short and Federated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federated Short position performs unexpectedly, Federated 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 Federated will offset losses from the drop in Federated's long position.| Federated Short vs. Federated Emerging Market | Federated Short vs. Federated Mdt All | Federated Short vs. Federated Mdt Balanced | Federated Short vs. Federated Global Allocation |
| Federated vs. Federated Mdt Large | Federated vs. Federated Total Return | Federated vs. Federated Max Cap Index |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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