Correlation Between Elfun Government and Federated Hermes
Can any of the company-specific risk be diversified away by investing in both Elfun Government 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 Elfun Government and Federated Hermes into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Elfun Government Money and Federated Hermes Core, you can compare the effects of market volatilities on Elfun Government 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 Elfun Government with a short position of Federated Hermes. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elfun Government and Federated Hermes.
Diversification Opportunities for Elfun Government and Federated Hermes
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Elfun and Federated is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Elfun Government Money 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 Elfun Government 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 Elfun Government Money 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 Elfun Government i.e., Elfun Government and Federated Hermes go up and down completely randomly.
Pair Corralation between Elfun Government and Federated Hermes
If you would invest 818.00 in Federated Hermes Core on October 20, 2024 and sell it today you would earn a total of 0.00 from holding Federated Hermes Core or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Elfun Government Money vs. Federated Hermes Core
Performance |
| Timeline |
| Elfun Government Money |
| Federated Hermes Core |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Elfun Government and Federated Hermes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elfun Government and Federated Hermes
The main advantage of trading using opposite Elfun Government and Federated Hermes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elfun Government 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.| Elfun Government vs. T Rowe Price | Elfun Government vs. Qs Large Cap | Elfun Government vs. Arrow Managed Futures | Elfun Government vs. Federated Global Allocation |
| Federated Hermes vs. Siit Ultra Short | Federated Hermes vs. Alpine Ultra Short | Federated Hermes vs. Angel Oak Ultrashort | Federated Hermes vs. Transam Short Term Bond |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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