Correlation Between Federated Mdt and Eagle Growth
Can any of the company-specific risk be diversified away by investing in both Federated Mdt and Eagle 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 Eagle Growth 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 Eagle Growth Income, you can compare the effects of market volatilities on Federated Mdt and Eagle 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 Eagle Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federated Mdt and Eagle Growth.
Diversification Opportunities for Federated Mdt and Eagle Growth
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Federated and Eagle is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Federated Mdt Small and Eagle Growth Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eagle Growth Income 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 Eagle Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eagle Growth Income has no effect on the direction of Federated Mdt i.e., Federated Mdt and Eagle Growth go up and down completely randomly.
Pair Corralation between Federated Mdt and Eagle Growth
Assuming the 90 days horizon Federated Mdt Small is expected to generate 2.01 times more return on investment than Eagle Growth. However, Federated Mdt is 2.01 times more volatile than Eagle Growth Income. It trades about 0.22 of its potential returns per unit of risk. Eagle Growth Income is currently generating about 0.24 per unit of risk. If you would invest 2,687 in Federated Mdt Small on June 2, 2025 and sell it today you would earn a total of 454.00 from holding Federated Mdt Small or generate 16.9% 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. Eagle Growth Income
Performance |
| Timeline |
| Federated Mdt Small |
| Eagle Growth Income |
Federated Mdt and Eagle Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federated Mdt and Eagle Growth
The main advantage of trading using opposite Federated Mdt and Eagle Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federated Mdt position performs unexpectedly, Eagle 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 Eagle Growth will offset losses from the drop in Eagle Growth's long position.| Federated Mdt vs. T Rowe Price | Federated Mdt vs. The Hartford Midcap | Federated Mdt vs. Federated Mdt Small | Federated Mdt vs. Fidelity Small Cap |
| Eagle Growth vs. Chartwell Short Duration | Eagle Growth vs. Carillon Chartwell Short | Eagle Growth vs. Chartwell Short Duration | Eagle Growth vs. Carillon Chartwell Short |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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