Correlation Between Federated Intercontinental and Federated Mdt

Can any of the company-specific risk be diversified away by investing in both Federated Intercontinental and Federated Mdt 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 Intercontinental and Federated Mdt into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Federated Intercontinental Fund and Federated Mdt Large, you can compare the effects of market volatilities on Federated Intercontinental and Federated Mdt 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 Intercontinental with a short position of Federated Mdt. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federated Intercontinental and Federated Mdt.

Diversification Opportunities for Federated Intercontinental and Federated Mdt

0.0

Correlation Coefficient

Federated Intercontinental  Federated Mdt

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 Intercontinental Fun and Federated Mdt Large in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated Mdt Large and Federated Intercontinental 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 Intercontinental Fund are associated (or correlated) with Federated Mdt. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federated Mdt Large has no effect on the direction of Federated Intercontinental i.e., Federated Intercontinental and Federated Mdt go up and down completely randomly.

Pair Corralation between Federated Intercontinental and Federated Mdt

If you would invest  3,089  in Federated Mdt Large on August 31, 2024 and sell it today you would earn a total of  430.00  from holding Federated Mdt Large or generate 13.92% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Federated Intercontinental Fun  vs.  Federated Mdt Large

Federated Intercontinental

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Federated Intercontinental Fund has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong fundamental drivers, Federated Intercontinental is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Federated Mdt Large

Risk-Adjusted Performance

17 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Federated Mdt Large are ranked lower than 17 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical and fundamental indicators, Federated Mdt showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Federated Intercontinental and Federated Mdt

The main advantage of trading using opposite Federated Intercontinental and Federated Mdt positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federated Intercontinental position performs unexpectedly, Federated Mdt 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 Mdt will offset losses from the drop in Federated Mdt's long position.

The idea behind Federated Intercontinental Fund and Federated Mdt Large pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.