Correlation Between Federated Kaufmann and Principal Fds

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

By analyzing existing cross correlation between Federated Kaufmann Small and Principal Fds Incincome, you can compare the effects of market volatilities on Federated Kaufmann and Principal Fds 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 Kaufmann with a short position of Principal Fds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federated Kaufmann and Principal Fds.

Diversification Opportunities for Federated Kaufmann and Principal Fds

0.0

Correlation Coefficient

Federated Kaufmann  Principal Fds

Pay attention - limited upside

The 3 months correlation between Federated and Principal is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Federated Kaufmann Small and Principal Fds Incincome in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Principal Fds Incincome and Federated Kaufmann 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 Kaufmann Small are associated (or correlated) with Principal Fds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Principal Fds Incincome has no effect on the direction of Federated Kaufmann i.e., Federated Kaufmann and Principal Fds go up and down completely randomly.

Pair Corralation between Federated Kaufmann and Principal Fds

If you would invest (100.00) in Principal Fds Incincome on May 16, 2025 and sell it today you would earn a total of  100.00  from holding Principal Fds Incincome or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Federated Kaufmann Small  vs.  Principal Fds Incincome

Federated Kaufmann Small

Risk-Adjusted Performance

Mild

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

Principal Fds Incincome

Risk-Adjusted Performance

Fair

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

Pair Trading with Federated Kaufmann and Principal Fds

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

The idea behind Federated Kaufmann Small and Principal Fds Incincome 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.