Correlation Between Federated Mdt and Glg Intl
Can any of the company-specific risk be diversified away by investing in both Federated Mdt and Glg Intl 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 Glg Intl 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 Glg Intl Small, you can compare the effects of market volatilities on Federated Mdt and Glg Intl 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 Glg Intl. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federated Mdt and Glg Intl.
Diversification Opportunities for Federated Mdt and Glg Intl
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Federated and Glg is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Federated Mdt Small and Glg Intl Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Glg Intl Small 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 Glg Intl. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Glg Intl Small has no effect on the direction of Federated Mdt i.e., Federated Mdt and Glg Intl go up and down completely randomly.
Pair Corralation between Federated Mdt and Glg Intl
Assuming the 90 days horizon Federated Mdt Small is expected to generate 1.38 times more return on investment than Glg Intl. However, Federated Mdt is 1.38 times more volatile than Glg Intl Small. It trades about 0.22 of its potential returns per unit of risk. Glg Intl Small is currently generating about 0.1 per unit of risk. If you would invest 2,517 in Federated Mdt Small on June 1, 2025 and sell it today you would earn a total of 439.00 from holding Federated Mdt Small or generate 17.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 98.44% |
| Values | Daily Returns |
Federated Mdt Small vs. Glg Intl Small
Performance |
| Timeline |
| Federated Mdt Small |
| Glg Intl Small |
Federated Mdt and Glg Intl Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federated Mdt and Glg Intl
The main advantage of trading using opposite Federated Mdt and Glg Intl positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federated Mdt position performs unexpectedly, Glg Intl 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 Glg Intl will offset losses from the drop in Glg Intl's long position.| Federated Mdt vs. Federated Mdt Small | Federated Mdt vs. Federated Mdt Small | Federated Mdt vs. Federated Mdt Large | Federated Mdt vs. Blackrock Mid Cap |
| Glg Intl vs. Baron Global Advantage | Glg Intl vs. Columbia Seligman Global | Glg Intl vs. Blackrock Mid Cap | Glg Intl vs. Internet Ultrasector Profund |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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