Correlation Between Atac Inflation and Federated Hermes
Can any of the company-specific risk be diversified away by investing in both Atac Inflation 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 Atac Inflation and Federated Hermes into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atac Inflation Rotation and Federated Hermes Inflation, you can compare the effects of market volatilities on Atac Inflation 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 Atac Inflation with a short position of Federated Hermes. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atac Inflation and Federated Hermes.
Diversification Opportunities for Atac Inflation and Federated Hermes
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Atac and Federated is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Atac Inflation Rotation and Federated Hermes Inflation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated Hermes Inf and Atac Inflation 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 Atac Inflation Rotation 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 Inf has no effect on the direction of Atac Inflation i.e., Atac Inflation and Federated Hermes go up and down completely randomly.
Pair Corralation between Atac Inflation and Federated Hermes
Assuming the 90 days horizon Atac Inflation Rotation is expected to generate 7.82 times more return on investment than Federated Hermes. However, Atac Inflation is 7.82 times more volatile than Federated Hermes Inflation. It trades about 0.24 of its potential returns per unit of risk. Federated Hermes Inflation is currently generating about 0.04 per unit of risk. If you would invest 3,130 in Atac Inflation Rotation on August 30, 2024 and sell it today you would earn a total of 339.00 from holding Atac Inflation Rotation or generate 10.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Atac Inflation Rotation vs. Federated Hermes Inflation
Performance |
| Timeline |
| Atac Inflation Rotation |
| Federated Hermes Inf |
Atac Inflation and Federated Hermes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atac Inflation and Federated Hermes
The main advantage of trading using opposite Atac Inflation and Federated Hermes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atac Inflation 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.| Atac Inflation vs. ATAC Rotation ETF | Atac Inflation vs. Tidal ETF Trust | Atac Inflation vs. Quadratic Interest Rate | Atac Inflation vs. Baron Global Advantage |
| Federated Hermes vs. Touchstone Ohio Tax | Federated Hermes vs. Angel Oak Financial | Federated Hermes vs. John Hancock Money | Federated Hermes vs. Mirova Global Green |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |