Correlation Between Value Fund and Federated Mdt

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

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

Diversification Opportunities for Value Fund and Federated Mdt

-0.04

Correlation Coefficient

Value Fund  Federated Mdt

Good diversification

The 3 months correlation between Value and Federated is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Value Fund Investor and Federated Mdt Balanced in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated Mdt Balanced and Value 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 Value Fund Investor are associated (or correlated) with Federated Mdt. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federated Mdt Balanced has no effect on the direction of Value Fund i.e., Value Fund and Federated Mdt go up and down completely randomly.

Pair Corralation between Value Fund and Federated Mdt

Assuming the 90 days horizon Value Fund Investor is expected to generate 0.66 times more return on investment than Federated Mdt. However, Value Fund Investor is 1.52 times less risky than Federated Mdt. It trades about 0.13 of its potential returns per unit of risk. Federated Mdt Balanced is currently generating about -0.08 per unit of risk. If you would invest  839.00  in Value Fund Investor on September 16, 2025 and sell it today you would earn a total of  45.00  from holding Value Fund Investor or generate 5.36% return on investment over 90 days.

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

Value Fund Investor  vs.  Federated Mdt Balanced

Value Fund Investor

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Value Fund Investor are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong essential indicators, Value Fund is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Federated Mdt Balanced

Risk-Adjusted Performance

Weakest

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

Pair Trading with Value Fund and Federated Mdt

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

The idea behind Value Fund Investor and Federated Mdt 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.