Correlation Between Issachar Fund and Federated Kaufmann
Can any of the company-specific risk be diversified away by investing in both Issachar Fund and Federated Kaufmann 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 Issachar Fund and Federated Kaufmann into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Issachar Fund Class and Federated Kaufmann Large, you can compare the effects of market volatilities on Issachar Fund and Federated Kaufmann 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 Issachar Fund with a short position of Federated Kaufmann. Check out your portfolio center. Please also check ongoing floating volatility patterns of Issachar Fund and Federated Kaufmann.
Diversification Opportunities for Issachar Fund and Federated Kaufmann
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Issachar and Federated is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Issachar Fund Class and Federated Kaufmann Large in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated Kaufmann Large and Issachar Fund 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 Issachar Fund Class are associated (or correlated) with Federated Kaufmann. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federated Kaufmann Large has no effect on the direction of Issachar Fund i.e., Issachar Fund and Federated Kaufmann go up and down completely randomly.
Pair Corralation between Issachar Fund and Federated Kaufmann
Assuming the 90 days horizon Issachar Fund is expected to generate 4.27 times less return on investment than Federated Kaufmann. But when comparing it to its historical volatility, Issachar Fund Class is 2.17 times less risky than Federated Kaufmann. It trades about 0.12 of its potential returns per unit of risk. Federated Kaufmann Large is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 1,362 in Federated Kaufmann Large on April 4, 2025 and sell it today you would earn a total of 403.00 from holding Federated Kaufmann Large or generate 29.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 98.39% |
| Values | Daily Returns |
Issachar Fund Class vs. Federated Kaufmann Large
Performance |
| Timeline |
| Issachar Fund Class |
| Federated Kaufmann Large |
Issachar Fund and Federated Kaufmann Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Issachar Fund and Federated Kaufmann
The main advantage of trading using opposite Issachar Fund and Federated Kaufmann positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Issachar Fund position performs unexpectedly, Federated Kaufmann 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 Kaufmann will offset losses from the drop in Federated Kaufmann's long position.| Issachar Fund vs. Allianzgi Diversified Income | Issachar Fund vs. Harbor Diversified International | Issachar Fund vs. Wilmington Diversified Income | Issachar Fund vs. Principal Lifetime Hybrid |
| Federated Kaufmann vs. Great West Servative Profile | Federated Kaufmann vs. Guidepath Servative Allocation | Federated Kaufmann vs. Wilmington Diversified Income | Federated Kaufmann vs. Vy T Rowe |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |