Federated Premier Municipal Fund Market Value

Symbol

Federated

In the world of financial modeling, what-if analysis is part of sensitivity analysis performed to test how changes in assumptions impact individual outputs in a model. When applied to Federated Premier's fund what-if analysis refers to the analyzing how the change in your past investing horizon will affect the profitability against the current market value of Federated Premier.

Federated Premier Upside/Downside Indicators

Federated Premier Market Risk Indicators

Today, many novice investors tend to focus exclusively on investment returns with little concern for Federated Premier's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Federated Premier's standard deviation. In reality, there are many statistical measures that can use Federated Premier historical prices to predict the future Federated Premier's volatility.

Autocorrelation, which is Federated Premier fund's lagged correlation, explains the relationship between observations of its time series of returns over different periods of time. The observations are said to be independent if autocorrelation is zero. Autocorrelation is calculated as a function of mean and variance and can have practical application in predicting Federated Premier's fund expected returns. We can calculate the autocorrelation of Federated Premier returns to help us make a trade decision. For example, suppose you find that Federated Premier has exhibited high autocorrelation historically, and you observe that the fund is moving up for the past few days. In that case, you can expect the price movement to match the lagging time series.

Serial correlation can be approximated by using the Durbin-Watson (DW) test. The correlation can be either positive or negative. If Federated Premier fund is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Federated Premier fund is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Federated Premier fund over time.

When evaluating Federated Premier's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Federated Premier fund have on its future price. Federated Premier autocorrelation represents the degree of similarity between a given time horizon and a lagged version of the same horizon over the previous time interval. In other words, Federated Premier autocorrelation shows the relationship between Federated Premier fund current value and its past values and can show if there is a momentum factor associated with investing in Federated Premier Municipal.

Federated Premier financial ratios help investors to determine whether Federated Fund is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in Federated with respect to the benefits of owning Federated Premier security.