Correlation Between Abeona Therapeutics and Federated Mdt

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Can any of the company-specific risk be diversified away by investing in both Abeona Therapeutics 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 Abeona Therapeutics and Federated Mdt into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Abeona Therapeutics and Federated Mdt Small, you can compare the effects of market volatilities on Abeona Therapeutics 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 Abeona Therapeutics with a short position of Federated Mdt. Check out your portfolio center. Please also check ongoing floating volatility patterns of Abeona Therapeutics and Federated Mdt.

Diversification Opportunities for Abeona Therapeutics and Federated Mdt

-0.01
  Correlation Coefficient

Good diversification

The 3 months correlation between Abeona and Federated is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Abeona Therapeutics and Federated Mdt Small in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated Mdt Small and Abeona Therapeutics 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 Abeona Therapeutics 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 Small has no effect on the direction of Abeona Therapeutics i.e., Abeona Therapeutics and Federated Mdt go up and down completely randomly.

Pair Corralation between Abeona Therapeutics and Federated Mdt

Given the investment horizon of 90 days Abeona Therapeutics is expected to under-perform the Federated Mdt. In addition to that, Abeona Therapeutics is 3.5 times more volatile than Federated Mdt Small. It trades about -0.05 of its total potential returns per unit of risk. Federated Mdt Small is currently generating about 0.01 per unit of volatility. If you would invest  1,770  in Federated Mdt Small on June 28, 2022 and sell it today you would earn a total of  34.00  from holding Federated Mdt Small or generate 1.92% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Abeona Therapeutics  vs.  Federated Mdt Small

 Performance (%) 
       Timeline  
Abeona Therapeutics 
Abeona Performance
0 of 100
Over the last 90 days Abeona Therapeutics has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's technical and fundamental indicators remain quite persistent which may send shares a bit higher in October 2022. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Abeona Price Channel

Federated Mdt Small 
Federated Performance
0 of 100
Over the last 90 days Federated Mdt Small has generated negative risk-adjusted returns adding no value to fund investors. In spite of latest weak performance, the Fund's fundamental indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the fund investors.

Federated Price Channel

Abeona Therapeutics and Federated Mdt Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Abeona Therapeutics and Federated Mdt

The main advantage of trading using opposite Abeona Therapeutics and Federated Mdt positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Abeona Therapeutics 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.
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The idea behind Abeona Therapeutics and Federated Mdt Small 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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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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.

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