Correlation Between Federated Real and Federated Bond
Can any of the company-specific risk be diversified away by investing in both Federated Real and Federated Bond 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 Real and Federated Bond into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Federated Real Return and Federated Bond Fund, you can compare the effects of market volatilities on Federated Real and Federated Bond 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 Real with a short position of Federated Bond. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federated Real and Federated Bond.
Diversification Opportunities for Federated Real and Federated Bond
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Federated and Federated is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Federated Real Return and Federated Bond Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated Bond and Federated Real 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 Real Return are associated (or correlated) with Federated Bond. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federated Bond has no effect on the direction of Federated Real i.e., Federated Real and Federated Bond go up and down completely randomly.
Pair Corralation between Federated Real and Federated Bond
If you would invest 823.00 in Federated Bond Fund on May 29, 2025 and sell it today you would earn a total of 21.00 from holding Federated Bond Fund or generate 2.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Federated Real Return vs. Federated Bond Fund
Performance |
| Timeline |
| Federated Real Return |
Risk-Adjusted Performance
Weakest
Weak | Strong |
| Federated Bond |
Federated Real and Federated Bond Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federated Real and Federated Bond
The main advantage of trading using opposite Federated Real and Federated Bond positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federated Real position performs unexpectedly, Federated Bond 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 Bond will offset losses from the drop in Federated Bond's long position.| Federated Real vs. Prudential Health Sciences | Federated Real vs. Live Oak Health | Federated Real vs. Vanguard Health Care | Federated Real vs. Invesco Global Health |
| Federated Bond vs. Federated Emerging Market | Federated Bond vs. Federated Mdt All | Federated Bond vs. Federated Mdt Balanced | Federated Bond vs. Federated Global Allocation |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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