Correlation Between Power Floating and Federated Global

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Can any of the company-specific risk be diversified away by investing in both Power Floating and Federated Global 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 Power Floating and Federated Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Power Floating Rate and Federated Global Allocation, you can compare the effects of market volatilities on Power Floating and Federated Global 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 Power Floating with a short position of Federated Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Power Floating and Federated Global.

Diversification Opportunities for Power Floating and Federated Global

-0.03
  Correlation Coefficient

Good diversification

The 3 months correlation between Power and Federated is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Power Floating Rate and Federated Global Allocation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated Global All and Power Floating 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 Power Floating Rate are associated (or correlated) with Federated Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federated Global All has no effect on the direction of Power Floating i.e., Power Floating and Federated Global go up and down completely randomly.

Pair Corralation between Power Floating and Federated Global

Assuming the 90 days horizon Power Floating Rate is expected to generate 0.15 times more return on investment than Federated Global. However, Power Floating Rate is 6.48 times less risky than Federated Global. It trades about 0.46 of its potential returns per unit of risk. Federated Global Allocation is currently generating about 0.05 per unit of risk. If you would invest  987.00  in Power Floating Rate on October 23, 2024 and sell it today you would earn a total of  7.00  from holding Power Floating Rate or generate 0.71% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Power Floating Rate  vs.  Federated Global Allocation

 Performance 
       Timeline  
Power Floating Rate 

Risk-Adjusted Performance

26 of 100

 
Weak
 
Strong
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Power Floating Rate are ranked lower than 26 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Power Floating is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
Federated Global All 

Risk-Adjusted Performance

1 of 100

 
Weak
 
Strong
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in Federated Global Allocation are ranked lower than 1 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong fundamental indicators, Federated Global is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Power Floating and Federated Global Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Power Floating and Federated Global

The main advantage of trading using opposite Power Floating and Federated Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Power Floating position performs unexpectedly, Federated Global 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 Global will offset losses from the drop in Federated Global's long position.
The idea behind Power Floating Rate and Federated Global Allocation 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.
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.

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