Correlation Between American High-income and Federated Hermes
Can any of the company-specific risk be diversified away by investing in both American High-income 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 American High-income and Federated Hermes into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American High Income Municipal and Federated Hermes Conservative, you can compare the effects of market volatilities on American High-income 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 American High-income with a short position of Federated Hermes. Check out your portfolio center. Please also check ongoing floating volatility patterns of American High-income and Federated Hermes.
Diversification Opportunities for American High-income and Federated Hermes
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between American and Federated is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding American High Income Municipal and Federated Hermes Conservative in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated Hermes Con and American High-income 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 American High Income Municipal 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 Con has no effect on the direction of American High-income i.e., American High-income and Federated Hermes go up and down completely randomly.
Pair Corralation between American High-income and Federated Hermes
If you would invest 1,536 in American High Income Municipal on September 2, 2024 and sell it today you would earn a total of 21.00 from holding American High Income Municipal or generate 1.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
American High Income Municipal vs. Federated Hermes Conservative
Performance |
| Timeline |
| American High Income |
| Federated Hermes Con |
American High-income and Federated Hermes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American High-income and Federated Hermes
The main advantage of trading using opposite American High-income and Federated Hermes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American High-income 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.| American High-income vs. Maryland Tax Free Bond | American High-income vs. T Rowe Price | American High-income vs. Versatile Bond Portfolio | American High-income vs. Blrc Sgy Mnp |
| Federated Hermes vs. Investec Emerging Markets | Federated Hermes vs. Franklin Emerging Market | Federated Hermes vs. Eagle Mlp Strategy | Federated Hermes vs. Ashmore Emerging Markets |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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