Correlation Between Locorr Market and Federated Emerging
Can any of the company-specific risk be diversified away by investing in both Locorr Market and Federated Emerging 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 Locorr Market and Federated Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Locorr Market Trend and Federated Emerging Market, you can compare the effects of market volatilities on Locorr Market and Federated Emerging 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 Locorr Market with a short position of Federated Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Locorr Market and Federated Emerging.
Diversification Opportunities for Locorr Market and Federated Emerging
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Locorr and FEDERATED is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Locorr Market Trend and Federated Emerging Market in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated Emerging Market and Locorr Market 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 Locorr Market Trend are associated (or correlated) with Federated Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federated Emerging Market has no effect on the direction of Locorr Market i.e., Locorr Market and Federated Emerging go up and down completely randomly.
Pair Corralation between Locorr Market and Federated Emerging
Assuming the 90 days horizon Locorr Market Trend is expected to generate 3.61 times more return on investment than Federated Emerging. However, Locorr Market is 3.61 times more volatile than Federated Emerging Market. It trades about 0.14 of its potential returns per unit of risk. Federated Emerging Market is currently generating about 0.35 per unit of risk. If you would invest 970.00 in Locorr Market Trend on July 20, 2025 and sell it today you would earn a total of 68.00 from holding Locorr Market Trend or generate 7.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 98.46% |
| Values | Daily Returns |
Locorr Market Trend vs. Federated Emerging Market
Performance |
| Timeline |
| Locorr Market Trend |
| Federated Emerging Market |
Locorr Market and Federated Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Locorr Market and Federated Emerging
The main advantage of trading using opposite Locorr Market and Federated Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Locorr Market position performs unexpectedly, Federated Emerging 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 Emerging will offset losses from the drop in Federated Emerging's long position.| Locorr Market vs. California High Yield Municipal | Locorr Market vs. Nuveen High Yield | Locorr Market vs. Pimco High Yield | Locorr Market vs. Rbc Bluebay Global |
| Federated Emerging vs. Federated Emerging Market | Federated Emerging vs. Federated Mdt All | Federated Emerging vs. Federated Mdt Balanced | Federated Emerging 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |