Correlation Between Martin Currie and Federated Mid-cap
Can any of the company-specific risk be diversified away by investing in both Martin Currie and Federated Mid-cap 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 Martin Currie and Federated Mid-cap into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Martin Currie Emerging and Federated Mid Cap Index, you can compare the effects of market volatilities on Martin Currie and Federated Mid-cap 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 Martin Currie with a short position of Federated Mid-cap. Check out your portfolio center. Please also check ongoing floating volatility patterns of Martin Currie and Federated Mid-cap.
Diversification Opportunities for Martin Currie and Federated Mid-cap
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Martin and Federated is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Martin Currie Emerging and Federated Mid Cap Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated Mid Cap and Martin Currie 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 Martin Currie Emerging are associated (or correlated) with Federated Mid-cap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federated Mid Cap has no effect on the direction of Martin Currie i.e., Martin Currie and Federated Mid-cap go up and down completely randomly.
Pair Corralation between Martin Currie and Federated Mid-cap
Assuming the 90 days horizon Martin Currie Emerging is expected to generate 1.03 times more return on investment than Federated Mid-cap. However, Martin Currie is 1.03 times more volatile than Federated Mid Cap Index. It trades about 0.19 of its potential returns per unit of risk. Federated Mid Cap Index is currently generating about 0.03 per unit of risk. If you would invest 1,459 in Martin Currie Emerging on July 24, 2025 and sell it today you would earn a total of 184.00 from holding Martin Currie Emerging or generate 12.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Martin Currie Emerging vs. Federated Mid Cap Index
Performance |
| Timeline |
| Martin Currie Emerging |
| Federated Mid Cap |
Martin Currie and Federated Mid-cap Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Martin Currie and Federated Mid-cap
The main advantage of trading using opposite Martin Currie and Federated Mid-cap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Martin Currie position performs unexpectedly, Federated Mid-cap 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 Mid-cap will offset losses from the drop in Federated Mid-cap's long position.| Martin Currie vs. Martin Currie Emerging | Martin Currie vs. Martin Currie Emerging | Martin Currie vs. Prudential Jennison Equity | Martin Currie vs. Prudential Jennison Equity |
| Federated Mid-cap vs. Federated Max Cap Index | Federated Mid-cap vs. Schwab Target 2020 | Federated Mid-cap vs. Martin Currie Emerging | Federated Mid-cap vs. Martin Currie Emerging |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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