Correlation Between Barings Emerging and Federated Hermes
Can any of the company-specific risk be diversified away by investing in both Barings Emerging 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 Barings Emerging and Federated Hermes into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barings Emerging Markets and Federated Hermes Core, you can compare the effects of market volatilities on Barings Emerging 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 Barings Emerging with a short position of Federated Hermes. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barings Emerging and Federated Hermes.
Diversification Opportunities for Barings Emerging and Federated Hermes
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Barings and Federated is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Barings Emerging Markets and Federated Hermes Core in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated Hermes Core and Barings Emerging 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 Barings Emerging Markets 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 Core has no effect on the direction of Barings Emerging i.e., Barings Emerging and Federated Hermes go up and down completely randomly.
Pair Corralation between Barings Emerging and Federated Hermes
If you would invest 732.00 in Barings Emerging Markets on September 12, 2024 and sell it today you would earn a total of 27.00 from holding Barings Emerging Markets or generate 3.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 0.4% |
| Values | Daily Returns |
Barings Emerging Markets vs. Federated Hermes Core
Performance |
| Timeline |
| Barings Emerging Markets |
| Federated Hermes Core |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Barings Emerging and Federated Hermes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Barings Emerging and Federated Hermes
The main advantage of trading using opposite Barings Emerging and Federated Hermes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barings Emerging 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.| Barings Emerging vs. Fidelity New Markets | Barings Emerging vs. Fidelity New Markets | Barings Emerging vs. Fidelity New Markets | Barings Emerging vs. SCOR PK |
| Federated Hermes vs. Western Asset Diversified | Federated Hermes vs. Calvert Developed Market | Federated Hermes vs. Barings Emerging Markets | Federated Hermes vs. Aqr Long Short Equity |
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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