Correlation Between Mh Elite and Federated Strategic
Can any of the company-specific risk be diversified away by investing in both Mh Elite and Federated Strategic 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 Mh Elite and Federated Strategic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mh Elite Fund and Federated Strategic Income, you can compare the effects of market volatilities on Mh Elite and Federated Strategic 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 Mh Elite with a short position of Federated Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mh Elite and Federated Strategic.
Diversification Opportunities for Mh Elite and Federated Strategic
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between MHEFX and Federated is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Mh Elite Fund and Federated Strategic Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated Strategic and Mh Elite 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 Mh Elite Fund are associated (or correlated) with Federated Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federated Strategic has no effect on the direction of Mh Elite i.e., Mh Elite and Federated Strategic go up and down completely randomly.
Pair Corralation between Mh Elite and Federated Strategic
Assuming the 90 days horizon Mh Elite Fund is expected to generate 3.53 times more return on investment than Federated Strategic. However, Mh Elite is 3.53 times more volatile than Federated Strategic Income. It trades about 0.23 of its potential returns per unit of risk. Federated Strategic Income is currently generating about 0.32 per unit of risk. If you would invest 847.00 in Mh Elite Fund on May 30, 2025 and sell it today you would earn a total of 71.00 from holding Mh Elite Fund or generate 8.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mh Elite Fund vs. Federated Strategic Income
Performance |
| Timeline |
| Mh Elite Fund |
| Federated Strategic |
Mh Elite and Federated Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mh Elite and Federated Strategic
The main advantage of trading using opposite Mh Elite and Federated Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mh Elite position performs unexpectedly, Federated Strategic 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 Strategic will offset losses from the drop in Federated Strategic's long position.| Mh Elite vs. Mh Elite Income | Mh Elite vs. Mh Elite Small | Mh Elite vs. Mh Elite Select | Mh Elite vs. Target Retirement 2040 |
| Federated Strategic vs. Profunds Money | Federated Strategic vs. Prudential Government Money | Federated Strategic vs. Matson Money Equity | Federated Strategic vs. Dws Government Money |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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