Correlation Between Issachar Fund and Federated Short-intermedia

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

By analyzing existing cross correlation between Issachar Fund Class and Federated Short Intermediate Duration, you can compare the effects of market volatilities on Issachar Fund and Federated Short-intermedia 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 Issachar Fund with a short position of Federated Short-intermedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Issachar Fund and Federated Short-intermedia.

Diversification Opportunities for Issachar Fund and Federated Short-intermedia

-0.61

Correlation Coefficient

Issachar Fund  Federated Short-intermedia

Excellent diversification

The 3 months correlation between Issachar and Federated is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Issachar Fund Class and Federated Short Intermediate D in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated Short-intermedia and Issachar Fund 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 Issachar Fund Class are associated (or correlated) with Federated Short-intermedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federated Short-intermedia has no effect on the direction of Issachar Fund i.e., Issachar Fund and Federated Short-intermedia go up and down completely randomly.

Pair Corralation between Issachar Fund and Federated Short-intermedia

Assuming the 90 days horizon Issachar Fund Class is expected to under-perform the Federated Short-intermedia. In addition to that, Issachar Fund is 16.61 times more volatile than Federated Short Intermediate Duration. It trades about -0.08 of its total potential returns per unit of risk. Federated Short Intermediate Duration is currently generating about 0.19 per unit of volatility. If you would invest  989.00  in Federated Short Intermediate Duration on December 24, 2024 and sell it today you would earn a total of  11.00  from holding Federated Short Intermediate Duration or generate 1.11% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Issachar Fund Class  vs.  Federated Short Intermediate D

Issachar Fund Class

Risk-Adjusted Performance

Very Weak

Over the last 90 days Issachar Fund Class has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Federated Short-intermedia

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Federated Short Intermediate Duration are ranked lower than 15 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Federated Short-intermedia is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Issachar Fund and Federated Short-intermedia

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

The idea behind Issachar Fund Class and Federated Short Intermediate Duration 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.