Correlation Between Federated Fund and Catalyst/map Global

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

By analyzing existing cross correlation between Federated Fund For and Catalystmap Global Balanced, you can compare the effects of market volatilities on Federated Fund and Catalyst/map 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 Federated Fund with a short position of Catalyst/map Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federated Fund and Catalyst/map Global.

Diversification Opportunities for Federated Fund and Catalyst/map Global

0.0

Correlation Coefficient

Federated Fund  Catalyst/map Global

Pay attention - limited upside

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

Pair Corralation between Federated Fund and Catalyst/map Global

If you would invest  1,195  in Catalystmap Global Balanced on May 20, 2025 and sell it today you would earn a total of  39.00  from holding Catalystmap Global Balanced or generate 3.26% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Federated Fund For  vs.  Catalystmap Global Balanced

Federated Fund For

Risk-Adjusted Performance

Fair

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

Catalyst/map Global

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Catalystmap Global Balanced are ranked lower than 12 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Catalyst/map Global 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 Fund and Catalyst/map Global

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

The idea behind Federated Fund For and Catalystmap Global Balanced 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.