Correlation Between Federated Emerging and Rreef Property

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

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

Diversification Opportunities for Federated Emerging and Rreef Property

0.61

Correlation Coefficient

Federated Emerging  Rreef Property

Poor diversification

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

Pair Corralation between Federated Emerging and Rreef Property

Assuming the 90 days horizon Federated Emerging Market is expected to generate 1.72 times more return on investment than Rreef Property. However, Federated Emerging is 1.72 times more volatile than Rreef Property Trust. It trades about 0.16 of its potential returns per unit of risk. Rreef Property Trust is currently generating about 0.0 per unit of risk. If you would invest  726.00  in Federated Emerging Market on July 25, 2025 and sell it today you would earn a total of  138.00  from holding Federated Emerging Market or generate 19.01% return on investment over 90 days.

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

Federated Emerging Market  vs.  Rreef Property Trust

Federated Emerging Market

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Federated Emerging Market are ranked lower than 25 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong fundamental indicators, Federated Emerging is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Rreef Property Trust

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Rreef Property Trust are ranked lower than 7 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Rreef Property 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 Emerging and Rreef Property

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

The idea behind Federated Emerging Market and Rreef Property Trust 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.