Correlation Between Federated Hermes and Blackrock Inflation
Can any of the company-specific risk be diversified away by investing in both Federated Hermes and Blackrock Inflation 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 Federated Hermes and Blackrock Inflation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Federated Hermes Conservative and Blackrock Inflation Protected, you can compare the effects of market volatilities on Federated Hermes and Blackrock Inflation 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 Federated Hermes with a short position of Blackrock Inflation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federated Hermes and Blackrock Inflation.
Diversification Opportunities for Federated Hermes and Blackrock Inflation
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Federated and Blackrock is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Federated Hermes Conservative and Blackrock Inflation Protected in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackrock Inflation and Federated Hermes 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 Federated Hermes Conservative are associated (or correlated) with Blackrock Inflation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackrock Inflation has no effect on the direction of Federated Hermes i.e., Federated Hermes and Blackrock Inflation go up and down completely randomly.
Pair Corralation between Federated Hermes and Blackrock Inflation
Assuming the 90 days horizon Federated Hermes Conservative is expected to generate 0.38 times more return on investment than Blackrock Inflation. However, Federated Hermes Conservative is 2.65 times less risky than Blackrock Inflation. It trades about 0.22 of its potential returns per unit of risk. Blackrock Inflation Protected is currently generating about -0.01 per unit of risk. If you would invest 975.00 in Federated Hermes Conservative on November 3, 2024 and sell it today you would earn a total of 27.00 from holding Federated Hermes Conservative or generate 2.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Federated Hermes Conservative vs. Blackrock Inflation Protected
Performance |
| Timeline |
| Federated Hermes Con |
| Blackrock Inflation |
Federated Hermes and Blackrock Inflation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federated Hermes and Blackrock Inflation
The main advantage of trading using opposite Federated Hermes and Blackrock Inflation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federated Hermes position performs unexpectedly, Blackrock Inflation 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 Blackrock Inflation will offset losses from the drop in Blackrock Inflation's long position.| Federated Hermes vs. Touchstone Small Cap | Federated Hermes vs. Oklahoma College Savings | Federated Hermes vs. Legg Mason Partners | Federated Hermes vs. Hunter Small Cap |
| Blackrock Inflation vs. The Growth Equity | Blackrock Inflation vs. Nuveen Core Equity | Blackrock Inflation vs. Aqr Long Short Equity | Blackrock Inflation vs. Doubleline Core Fixed |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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