Correlation Between Rmb Mendon and Federated Strategic
Can any of the company-specific risk be diversified away by investing in both Rmb Mendon and Federated Strategic 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 Rmb Mendon and Federated Strategic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rmb Mendon Financial and Federated Strategic Income, you can compare the effects of market volatilities on Rmb Mendon and Federated Strategic 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 Rmb Mendon with a short position of Federated Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rmb Mendon and Federated Strategic.
Diversification Opportunities for Rmb Mendon and Federated Strategic
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Rmb and Federated is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Rmb Mendon Financial and Federated Strategic Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated Strategic and Rmb Mendon 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 Rmb Mendon Financial are associated (or correlated) with Federated Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federated Strategic has no effect on the direction of Rmb Mendon i.e., Rmb Mendon and Federated Strategic go up and down completely randomly.
Pair Corralation between Rmb Mendon and Federated Strategic
Assuming the 90 days horizon Rmb Mendon Financial is expected to generate 9.04 times more return on investment than Federated Strategic. However, Rmb Mendon is 9.04 times more volatile than Federated Strategic Income. It trades about 0.11 of its potential returns per unit of risk. Federated Strategic Income is currently generating about 0.3 per unit of risk. If you would invest 4,882 in Rmb Mendon Financial on May 27, 2025 and sell it today you would earn a total of 463.00 from holding Rmb Mendon Financial or generate 9.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rmb Mendon Financial vs. Federated Strategic Income
Performance |
| Timeline |
| Rmb Mendon Financial |
| Federated Strategic |
Rmb Mendon and Federated Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rmb Mendon and Federated Strategic
The main advantage of trading using opposite Rmb Mendon and Federated Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rmb Mendon position performs unexpectedly, Federated Strategic 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 Strategic will offset losses from the drop in Federated Strategic's long position.| Rmb Mendon vs. Aew Real Estate | Rmb Mendon vs. Cohen Steers Real | Rmb Mendon vs. Real Estate Ultrasector | Rmb Mendon vs. Dunham Real Estate |
| Federated Strategic vs. Astor Star Fund | Federated Strategic vs. Mh Elite Fund | Federated Strategic vs. Transamerica Funds | Federated Strategic vs. Semiconductor 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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