Correlation Between T Rowe and Federated Emerging
Can any of the company-specific risk be diversified away by investing in both T Rowe and Federated Emerging 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 T Rowe and Federated Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between T Rowe Price and Federated Emerging Market, you can compare the effects of market volatilities on T Rowe and Federated Emerging 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 T Rowe with a short position of Federated Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of T Rowe and Federated Emerging.
Diversification Opportunities for T Rowe and Federated Emerging
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between TBLPX and Federated is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding T Rowe Price and Federated Emerging Market in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated Emerging Market and T Rowe 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 T Rowe Price are associated (or correlated) with Federated Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federated Emerging Market has no effect on the direction of T Rowe i.e., T Rowe and Federated Emerging go up and down completely randomly.
Pair Corralation between T Rowe and Federated Emerging
Assuming the 90 days horizon T Rowe is expected to generate 1.23 times less return on investment than Federated Emerging. In addition to that, T Rowe is 1.21 times more volatile than Federated Emerging Market. It trades about 0.21 of its total potential returns per unit of risk. Federated Emerging Market is currently generating about 0.32 per unit of volatility. If you would invest 839.00 in Federated Emerging Market on July 27, 2025 and sell it today you would earn a total of 40.00 from holding Federated Emerging Market or generate 4.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
T Rowe Price vs. Federated Emerging Market
Performance |
| Timeline |
| T Rowe Price |
| Federated Emerging Market |
T Rowe and Federated Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with T Rowe and Federated Emerging
The main advantage of trading using opposite T Rowe and Federated Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if T Rowe position performs unexpectedly, Federated Emerging 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 Emerging will offset losses from the drop in Federated Emerging's long position.| T Rowe vs. Aqr Diversified Arbitrage | T Rowe vs. Diversified Bond Fund | T Rowe vs. Diversified Income Fund | T Rowe vs. Delaware Limited Term Diversified |
| Federated Emerging vs. T Rowe Price | Federated Emerging vs. Jpmorgan Trust Iv | Federated Emerging vs. Doubleline Emerging Markets | Federated Emerging vs. Aig Government Money |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |