Correlation Between Federated Short and Locorr Longshort
Can any of the company-specific risk be diversified away by investing in both Federated Short and Locorr Longshort 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 Short and Locorr Longshort into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Federated Short Term Income and Locorr Longshort Modities, you can compare the effects of market volatilities on Federated Short and Locorr Longshort 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 Short with a short position of Locorr Longshort. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federated Short and Locorr Longshort.
Diversification Opportunities for Federated Short and Locorr Longshort
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Federated and Locorr is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Federated Short Term Income and Locorr Longshort Modities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Locorr Longshort Modities and Federated Short 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 Short Term Income are associated (or correlated) with Locorr Longshort. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Locorr Longshort Modities has no effect on the direction of Federated Short i.e., Federated Short and Locorr Longshort go up and down completely randomly.
Pair Corralation between Federated Short and Locorr Longshort
Assuming the 90 days horizon Federated Short Term Income is expected to generate 0.39 times more return on investment than Locorr Longshort. However, Federated Short Term Income is 2.59 times less risky than Locorr Longshort. It trades about 0.06 of its potential returns per unit of risk. Locorr Longshort Modities is currently generating about -0.21 per unit of risk. If you would invest 847.00 in Federated Short Term Income on September 12, 2024 and sell it today you would earn a total of 4.00 from holding Federated Short Term Income or generate 0.47% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Federated Short Term Income vs. Locorr Longshort Modities
Performance |
Timeline |
Federated Short Term |
Locorr Longshort Modities |
Federated Short and Locorr Longshort Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Federated Short and Locorr Longshort
The main advantage of trading using opposite Federated Short and Locorr Longshort positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federated Short position performs unexpectedly, Locorr Longshort 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 Locorr Longshort will offset losses from the drop in Locorr Longshort's long position.Federated Short vs. Franklin Growth Opportunities | Federated Short vs. Tfa Alphagen Growth | Federated Short vs. Praxis Growth Index | Federated Short vs. Eip Growth And |
Locorr Longshort vs. Quantitative Longshort Equity | Locorr Longshort vs. Easterly Snow Longshort | Locorr Longshort vs. Blackrock Short Term Inflat Protected | Locorr Longshort vs. Astor Longshort Fund |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
Share Portfolio Track or share privately all of your investments from the convenience of any device |