Correlation Between Ab All and Federated Global

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

By analyzing existing cross correlation between Ab All Market and Federated Global Allocation, you can compare the effects of market volatilities on Ab All 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 Ab All with a short position of Federated Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ab All and Federated Global.

Diversification Opportunities for Ab All and Federated Global

0.98

Correlation Coefficient

Ab All  Federated Global

Almost no diversification

The 3 months correlation between AMTOX and Federated is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Ab All Market 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 Ab All 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 Ab All Market 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 Ab All i.e., Ab All and Federated Global go up and down completely randomly.

Pair Corralation between Ab All and Federated Global

Assuming the 90 days horizon Ab All is expected to generate 1.21 times less return on investment than Federated Global. In addition to that, Ab All is 1.06 times more volatile than Federated Global Allocation. It trades about 0.21 of its total potential returns per unit of risk. Federated Global Allocation is currently generating about 0.27 per unit of volatility. If you would invest  1,956  in Federated Global Allocation on May 2, 2025 and sell it today you would earn a total of  136.00  from holding Federated Global Allocation or generate 6.95% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

Ab All Market  vs.  Federated Global Allocation

Ab All Market

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Ab All Market are ranked lower than 16 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Ab All 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

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Federated Global Allocation are ranked lower than 20 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak fundamental indicators, Federated Global may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Ab All and Federated Global

The main advantage of trading using opposite Ab All and Federated Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ab All 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 Ab All Market 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.