Correlation Between College Retirement and Federated Total
Can any of the company-specific risk be diversified away by investing in both College Retirement and Federated Total 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 College Retirement and Federated Total into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between College Retirement Equities and Federated Total Return, you can compare the effects of market volatilities on College Retirement and Federated Total 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 College Retirement with a short position of Federated Total. Check out your portfolio center. Please also check ongoing floating volatility patterns of College Retirement and Federated Total.
Diversification Opportunities for College Retirement and Federated Total
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between College and Federated is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding College Retirement Equities and Federated Total Return in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated Total Return and College Retirement 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 College Retirement Equities are associated (or correlated) with Federated Total. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federated Total Return has no effect on the direction of College Retirement i.e., College Retirement and Federated Total go up and down completely randomly.
Pair Corralation between College Retirement and Federated Total
Assuming the 90 days trading horizon College Retirement Equities is expected to generate 2.4 times more return on investment than Federated Total. However, College Retirement is 2.4 times more volatile than Federated Total Return. It trades about 0.16 of its potential returns per unit of risk. Federated Total Return is currently generating about 0.18 per unit of risk. If you would invest 35,961 in College Retirement Equities on June 6, 2025 and sell it today you would earn a total of 2,253 from holding College Retirement Equities or generate 6.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 98.39% |
| Values | Daily Returns |
College Retirement Equities vs. Federated Total Return
Performance |
| Timeline |
| College Retirement |
| Federated Total Return |
College Retirement and Federated Total Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with College Retirement and Federated Total
The main advantage of trading using opposite College Retirement and Federated Total positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if College Retirement position performs unexpectedly, Federated Total 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 Total will offset losses from the drop in Federated Total's long position.| College Retirement vs. Sa Worldwide Moderate | College Retirement vs. Qs Moderate Growth | College Retirement vs. Franklin Lifesmart Retirement | College Retirement vs. Columbia Moderate Growth |
| Federated Total vs. Federated Emerging Market | Federated Total vs. Federated Mdt All | Federated Total vs. Federated Mdt Balanced | Federated Total 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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