Correlation Between Knights Of and Federated High
Can any of the company-specific risk be diversified away by investing in both Knights Of and Federated High 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 Knights Of and Federated High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Knights Of Umbus and Federated High Yield, you can compare the effects of market volatilities on Knights Of and Federated High 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 Knights Of with a short position of Federated High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Knights Of and Federated High.
Diversification Opportunities for Knights Of and Federated High
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Knights and Federated is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Knights Of Umbus and Federated High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated High Yield and Knights Of 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 Knights Of Umbus are associated (or correlated) with Federated High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federated High Yield has no effect on the direction of Knights Of i.e., Knights Of and Federated High go up and down completely randomly.
Pair Corralation between Knights Of and Federated High
Assuming the 90 days horizon Knights Of Umbus is expected to generate 3.86 times more return on investment than Federated High. However, Knights Of is 3.86 times more volatile than Federated High Yield. It trades about 0.21 of its potential returns per unit of risk. Federated High Yield is currently generating about 0.18 per unit of risk. If you would invest 2,216 in Knights Of Umbus on June 8, 2025 and sell it today you would earn a total of 137.00 from holding Knights Of Umbus or generate 6.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Knights Of Umbus vs. Federated High Yield
Performance |
| Timeline |
| Knights Of Umbus |
| Federated High Yield |
Knights Of and Federated High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Knights Of and Federated High
The main advantage of trading using opposite Knights Of and Federated High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Knights Of position performs unexpectedly, Federated High 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 High will offset losses from the drop in Federated High's long position.| Knights Of vs. Qs Growth Fund | Knights Of vs. Aquila Three Peaks | Knights Of vs. T Rowe Price | Knights Of vs. Tfa Alphagen Growth |
| Federated High vs. Federated Emerging Market | Federated High vs. Federated Mdt All | Federated High vs. Federated Mdt Balanced | Federated High vs. Federated Global Allocation |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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