Correlation Between Federated Mdt and Hunter Small
Can any of the company-specific risk be diversified away by investing in both Federated Mdt and Hunter Small 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 Mdt and Hunter Small into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Federated Mdt Small and Hunter Small Cap, you can compare the effects of market volatilities on Federated Mdt and Hunter Small 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 Mdt with a short position of Hunter Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federated Mdt and Hunter Small.
Diversification Opportunities for Federated Mdt and Hunter Small
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Federated and Hunter is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Federated Mdt Small and Hunter Small Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hunter Small Cap and Federated Mdt 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 Mdt Small are associated (or correlated) with Hunter Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hunter Small Cap has no effect on the direction of Federated Mdt i.e., Federated Mdt and Hunter Small go up and down completely randomly.
Pair Corralation between Federated Mdt and Hunter Small
Assuming the 90 days horizon Federated Mdt Small is expected to generate 1.11 times more return on investment than Hunter Small. However, Federated Mdt is 1.11 times more volatile than Hunter Small Cap. It trades about 0.2 of its potential returns per unit of risk. Hunter Small Cap is currently generating about 0.15 per unit of risk. If you would invest 1,971 in Federated Mdt Small on June 5, 2025 and sell it today you would earn a total of 289.00 from holding Federated Mdt Small or generate 14.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Federated Mdt Small vs. Hunter Small Cap
Performance |
| Timeline |
| Federated Mdt Small |
| Hunter Small Cap |
Federated Mdt and Hunter Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federated Mdt and Hunter Small
The main advantage of trading using opposite Federated Mdt and Hunter Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federated Mdt position performs unexpectedly, Hunter Small 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 Hunter Small will offset losses from the drop in Hunter Small's long position.| Federated Mdt vs. Angel Oak Multi Strategy | Federated Mdt vs. Hartford Emerging Markets | Federated Mdt vs. Investec Emerging Markets | Federated Mdt vs. Transamerica Emerging Markets |
| Hunter Small vs. Transamerica Multi Managed Balanced | Hunter Small vs. Mid Cap Growth | Hunter Small vs. T Rowe Price | Hunter Small vs. Oppenheimer Cnsrvtv Invstr |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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