Correlation Between Federated Mdt and Edgewood Growth
Can any of the company-specific risk be diversified away by investing in both Federated Mdt and Edgewood Growth 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 Edgewood Growth into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Federated Mdt Large and Edgewood Growth Fund, you can compare the effects of market volatilities on Federated Mdt and Edgewood Growth 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 Edgewood Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federated Mdt and Edgewood Growth.
Diversification Opportunities for Federated Mdt and Edgewood Growth
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Federated and Edgewood is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Federated Mdt Large and Edgewood Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Edgewood Growth 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 Large are associated (or correlated) with Edgewood Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Edgewood Growth has no effect on the direction of Federated Mdt i.e., Federated Mdt and Edgewood Growth go up and down completely randomly.
Pair Corralation between Federated Mdt and Edgewood Growth
Assuming the 90 days horizon Federated Mdt Large is expected to generate 0.85 times more return on investment than Edgewood Growth. However, Federated Mdt Large is 1.18 times less risky than Edgewood Growth. It trades about 0.37 of its potential returns per unit of risk. Edgewood Growth Fund is currently generating about 0.17 per unit of risk. If you would invest 3,738 in Federated Mdt Large on March 29, 2025 and sell it today you would earn a total of 220.00 from holding Federated Mdt Large or generate 5.89% 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 Large vs. Edgewood Growth Fund
Performance |
| Timeline |
| Federated Mdt Large |
| Edgewood Growth |
Federated Mdt and Edgewood Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federated Mdt and Edgewood Growth
The main advantage of trading using opposite Federated Mdt and Edgewood Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federated Mdt position performs unexpectedly, Edgewood Growth 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 Edgewood Growth will offset losses from the drop in Edgewood Growth's long position.| Federated Mdt vs. Franklin Adjustable Government | Federated Mdt vs. California Municipal Portfolio | Federated Mdt vs. Federated Government Ultrashort | Federated Mdt vs. Aig Government Money |
| Edgewood Growth vs. Edgewood Growth Fund | Edgewood Growth vs. Polen Growth Fund | Edgewood Growth vs. Doubleline Shiller Enhanced | Edgewood Growth vs. Parnassus Endeavor Fund |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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