Correlation Between Asg Managed and Federated Hermes
Can any of the company-specific risk be diversified away by investing in both Asg Managed and Federated Hermes 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 Asg Managed and Federated Hermes into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asg Managed Futures and Federated Hermes Ultrashort, you can compare the effects of market volatilities on Asg Managed and Federated Hermes 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 Asg Managed with a short position of Federated Hermes. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asg Managed and Federated Hermes.
Diversification Opportunities for Asg Managed and Federated Hermes
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Asg and Federated is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Asg Managed Futures and Federated Hermes Ultrashort in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated Hermes Ult and Asg Managed 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 Asg Managed Futures are associated (or correlated) with Federated Hermes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federated Hermes Ult has no effect on the direction of Asg Managed i.e., Asg Managed and Federated Hermes go up and down completely randomly.
Pair Corralation between Asg Managed and Federated Hermes
Assuming the 90 days horizon Asg Managed Futures is expected to generate 4.83 times more return on investment than Federated Hermes. However, Asg Managed is 4.83 times more volatile than Federated Hermes Ultrashort. It trades about 0.12 of its potential returns per unit of risk. Federated Hermes Ultrashort is currently generating about 0.28 per unit of risk. If you would invest 869.00 in Asg Managed Futures on September 13, 2024 and sell it today you would earn a total of 11.00 from holding Asg Managed Futures or generate 1.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asg Managed Futures vs. Federated Hermes Ultrashort
Performance |
| Timeline |
| Asg Managed Futures |
| Federated Hermes Ult |
Asg Managed and Federated Hermes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asg Managed and Federated Hermes
The main advantage of trading using opposite Asg Managed and Federated Hermes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asg Managed position performs unexpectedly, Federated Hermes 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 Hermes will offset losses from the drop in Federated Hermes' long position.| Asg Managed vs. Aqr Managed Futures | Asg Managed vs. Pimco Trends Managed | Asg Managed vs. Eaton Vance Global | Asg Managed vs. Aqr Managed Futures |
| Federated Hermes vs. Federated Emerging Market | Federated Hermes vs. Federated Mdt All | Federated Hermes vs. Federated Mdt Balanced | Federated Hermes vs. Federated Global Allocation |
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 the Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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