Correlation Between Calvert Conservative and Federated Hermes
Can any of the company-specific risk be diversified away by investing in both Calvert Conservative 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 Calvert Conservative and Federated Hermes into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calvert Conservative Allocation and Federated Hermes Conservative, you can compare the effects of market volatilities on Calvert Conservative 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 Calvert Conservative with a short position of Federated Hermes. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert Conservative and Federated Hermes.
Diversification Opportunities for Calvert Conservative and Federated Hermes
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Calvert and Federated is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Conservative Allocatio 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 Calvert Conservative 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 Calvert Conservative Allocation 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 Calvert Conservative i.e., Calvert Conservative and Federated Hermes go up and down completely randomly.
Pair Corralation between Calvert Conservative and Federated Hermes
Assuming the 90 days horizon Calvert Conservative Allocation is expected to generate 4.03 times more return on investment than Federated Hermes. However, Calvert Conservative is 4.03 times more volatile than Federated Hermes Conservative. It trades about 0.07 of its potential returns per unit of risk. Federated Hermes Conservative is currently generating about 0.22 per unit of risk. If you would invest 1,782 in Calvert Conservative Allocation on October 24, 2024 and sell it today you would earn a total of 9.00 from holding Calvert Conservative Allocation or generate 0.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calvert Conservative Allocatio vs. Federated Hermes Conservative
Performance |
| Timeline |
| Calvert Conservative |
| Federated Hermes Con |
Calvert Conservative and Federated Hermes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calvert Conservative and Federated Hermes
The main advantage of trading using opposite Calvert Conservative and Federated Hermes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert Conservative 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.| Calvert Conservative vs. John Hancock Money | Calvert Conservative vs. Aig Government Money | Calvert Conservative vs. Ashmore Emerging Markets | Calvert Conservative vs. Hsbc Treasury Money |
| Federated Hermes vs. Federated High Yield | Federated Hermes vs. Old Westbury Municipal | Federated Hermes vs. Georgia Tax Free Bond | Federated Hermes vs. Blrc Sgy Mnp |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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