Correlation Between Federated Kaufmann and Issachar Fund
Can any of the company-specific risk be diversified away by investing in both Federated Kaufmann and Issachar Fund 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 Kaufmann and Issachar Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Federated Kaufmann Large and Issachar Fund Class, you can compare the effects of market volatilities on Federated Kaufmann and Issachar Fund 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 Kaufmann with a short position of Issachar Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federated Kaufmann and Issachar Fund.
Diversification Opportunities for Federated Kaufmann and Issachar Fund
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Federated and Issachar is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Federated Kaufmann Large and Issachar Fund Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Issachar Fund Class and Federated Kaufmann 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 Kaufmann Large are associated (or correlated) with Issachar Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Issachar Fund Class has no effect on the direction of Federated Kaufmann i.e., Federated Kaufmann and Issachar Fund go up and down completely randomly.
Pair Corralation between Federated Kaufmann and Issachar Fund
Assuming the 90 days horizon Federated Kaufmann Large is expected to generate 1.43 times more return on investment than Issachar Fund. However, Federated Kaufmann is 1.43 times more volatile than Issachar Fund Class. It trades about 0.25 of its potential returns per unit of risk. Issachar Fund Class is currently generating about 0.15 per unit of risk. If you would invest 1,495 in Federated Kaufmann Large on April 9, 2025 and sell it today you would earn a total of 302.00 from holding Federated Kaufmann Large or generate 20.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Federated Kaufmann Large vs. Issachar Fund Class
Performance |
| Timeline |
| Federated Kaufmann Large |
| Issachar Fund Class |
Federated Kaufmann and Issachar Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federated Kaufmann and Issachar Fund
The main advantage of trading using opposite Federated Kaufmann and Issachar Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federated Kaufmann position performs unexpectedly, Issachar Fund 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 Issachar Fund will offset losses from the drop in Issachar Fund's long position.| Federated Kaufmann vs. Dreyfus Natural Resources | Federated Kaufmann vs. Calvert Global Energy | Federated Kaufmann vs. Fidelity Advisor Energy | Federated Kaufmann vs. Global Resources Fund |
| Issachar Fund vs. Nasdaq 100 Index Fund | Issachar Fund vs. Sound Shore Fund | Issachar Fund vs. Intermediate Term Tax Free Bond | Issachar Fund vs. Western Asset E |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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