Correlation Between Federated Prudent and Federated Prudent
Can any of the company-specific risk be diversified away by investing in both Federated Prudent and Federated Prudent 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 Prudent and Federated Prudent into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Federated Prudent Bear and Federated Prudent Bear, you can compare the effects of market volatilities on Federated Prudent and Federated Prudent 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 Prudent with a short position of Federated Prudent. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federated Prudent and Federated Prudent.
Diversification Opportunities for Federated Prudent and Federated Prudent
1.0 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Federated and Federated is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding Federated Prudent Bear and Federated Prudent Bear in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated Prudent Bear and Federated Prudent 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 Prudent Bear are associated (or correlated) with Federated Prudent. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federated Prudent Bear has no effect on the direction of Federated Prudent i.e., Federated Prudent and Federated Prudent go up and down completely randomly.
Pair Corralation between Federated Prudent and Federated Prudent
Assuming the 90 days horizon Federated Prudent Bear is expected to under-perform the Federated Prudent. But the mutual fund apears to be less risky and, when comparing its historical volatility, Federated Prudent Bear is 1.02 times less risky than Federated Prudent. The mutual fund trades about -0.17 of its potential returns per unit of risk. The Federated Prudent Bear is currently generating about -0.17 of returns per unit of risk over similar time horizon. If you would invest 451.00 in Federated Prudent Bear on June 9, 2025 and sell it today you would lose (29.00) from holding Federated Prudent Bear or give up 6.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Federated Prudent Bear vs. Federated Prudent Bear
Performance |
| Timeline |
| Federated Prudent Bear |
| Federated Prudent Bear |
Federated Prudent and Federated Prudent Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federated Prudent and Federated Prudent
The main advantage of trading using opposite Federated Prudent and Federated Prudent positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federated Prudent position performs unexpectedly, Federated Prudent 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 Prudent will offset losses from the drop in Federated Prudent's long position.| Federated Prudent vs. Siit Equity Factor | Federated Prudent vs. Rbc China Equity | Federated Prudent vs. Enhanced Fixed Income | Federated Prudent vs. Goldman Sachs Equity |
| Federated Prudent vs. Federated Emerging Market | Federated Prudent vs. Federated Mdt All | Federated Prudent vs. Federated Mdt Balanced | Federated Prudent 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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