Federal risk analysis

Use Federal National Mortgage Association risk analysis concurrently with your other holdings, portfolios, and investing themes to protect against small markets fluctuations and to back test it against optimization strategy that fits your risk preferences.  Analyze Themes

Projected Return Density against Market

Assuming 30 trading days horizon, the otc stock has beta cooficient of 3.33 suggesting as the benchmark fluctuates upward, the company is expected to outperform it on average. However, if the benchmark returns are expected to be negative, Federal will likely underperform. In addition to that, Federal National Mortgage Association has alpha of 3.33 implying that it can potentially generate 3.33% excess return over S&P 500 after adjusting for the inherited market risk (beta).Assuming 30 trading days horizon, the coefficient of variation of Federal is 579.9. The daily returns are destributed with a variance of 21.65 and standard deviation of 4.65. The mean deviation of Federal National Mortgage Association is currently at 2.38. For similar time horizon, the selected benchmark (S&P 500) has volatility of 0.55

	(alpha)	=	3.33	Details
	(beta)	=	3.33	Details
	(volatility)	=	4.65	Details

Actual Return Volatility

Federal National Mortgage Association accepts 4.65% volatility on return distribution over the 30 days horizon. S&P 500 shows 0.55% volatility of returns over 30 trading days.