Correlation Between GraniteShares ETF and Federated Hermes
Can any of the company-specific risk be diversified away by investing in both GraniteShares ETF 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 GraniteShares ETF and Federated Hermes into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GraniteShares ETF Trust and Federated Hermes ETF, you can compare the effects of market volatilities on GraniteShares ETF 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 GraniteShares ETF with a short position of Federated Hermes. Check out your portfolio center. Please also check ongoing floating volatility patterns of GraniteShares ETF and Federated Hermes.
Diversification Opportunities for GraniteShares ETF and Federated Hermes
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between GraniteShares and Federated is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding GraniteShares ETF Trust and Federated Hermes ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated Hermes ETF and GraniteShares ETF 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 GraniteShares ETF Trust 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 ETF has no effect on the direction of GraniteShares ETF i.e., GraniteShares ETF and Federated Hermes go up and down completely randomly.
Pair Corralation between GraniteShares ETF and Federated Hermes
Given the investment horizon of 90 days GraniteShares ETF Trust is expected to generate 149.78 times more return on investment than Federated Hermes. However, GraniteShares ETF is 149.78 times more volatile than Federated Hermes ETF. It trades about 0.21 of its potential returns per unit of risk. Federated Hermes ETF is currently generating about 0.09 per unit of risk. If you would invest 3,444 in GraniteShares ETF Trust on August 29, 2024 and sell it today you would earn a total of 2,470 from holding GraniteShares ETF Trust or generate 71.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GraniteShares ETF Trust vs. Federated Hermes ETF
Performance |
| Timeline |
| GraniteShares ETF Trust |
| Federated Hermes ETF |
GraniteShares ETF and Federated Hermes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GraniteShares ETF and Federated Hermes
The main advantage of trading using opposite GraniteShares ETF and Federated Hermes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GraniteShares ETF 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.| GraniteShares ETF vs. ABIVAX Socit Anonyme | GraniteShares ETF vs. Morningstar Unconstrained Allocation | GraniteShares ETF vs. SPACE | GraniteShares ETF vs. Knife River |
| Federated Hermes vs. iShares 5 10 Year | Federated Hermes vs. iShares 0 5 Year | Federated Hermes vs. SPDR Barclays Short | Federated Hermes vs. iShares Core Total |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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