Correlation Between Global Resources and Federated Kaufmann
Can any of the company-specific risk be diversified away by investing in both Global Resources 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 Global Resources and Federated Kaufmann into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Resources Fund and Federated Kaufmann Large, you can compare the effects of market volatilities on Global Resources 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 Global Resources with a short position of Federated Kaufmann. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Resources and Federated Kaufmann.
Diversification Opportunities for Global Resources and Federated Kaufmann
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Global and Federated is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Global Resources Fund 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 Global Resources 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 Global Resources Fund 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 Global Resources i.e., Global Resources and Federated Kaufmann go up and down completely randomly.
Pair Corralation between Global Resources and Federated Kaufmann
Assuming the 90 days horizon Global Resources Fund is expected to generate 1.28 times more return on investment than Federated Kaufmann. However, Global Resources is 1.28 times more volatile than Federated Kaufmann Large. It trades about 0.35 of its potential returns per unit of risk. Federated Kaufmann Large is currently generating about -0.02 per unit of risk. If you would invest 438.00 in Global Resources Fund on May 29, 2025 and sell it today you would earn a total of 38.00 from holding Global Resources Fund or generate 8.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global Resources Fund vs. Federated Kaufmann Large
Performance |
| Timeline |
| Global Resources |
| Federated Kaufmann Large |
Global Resources and Federated Kaufmann Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Resources and Federated Kaufmann
The main advantage of trading using opposite Global Resources and Federated Kaufmann positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Resources 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.| Global Resources vs. Qs Growth Fund | Global Resources vs. Leuthold Global Fund | Global Resources vs. Rbb Fund | Global Resources vs. T Rowe Price |
| Federated Kaufmann vs. Fidelity Capital Income | Federated Kaufmann vs. Msift High Yield | Federated Kaufmann vs. Pioneer High Yield | Federated Kaufmann vs. Jpmorgan High Yield |
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 Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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