Correlation Between Federated Hermes and Calvert Global
Can any of the company-specific risk be diversified away by investing in both Federated Hermes and Calvert Global 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 Calvert Global 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 Calvert Global Energy, you can compare the effects of market volatilities on Federated Hermes and Calvert Global 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 Calvert Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federated Hermes and Calvert Global.
Diversification Opportunities for Federated Hermes and Calvert Global
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Federated and Calvert is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Federated Hermes Conservative and Calvert Global Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Global Energy 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 Calvert Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Global Energy has no effect on the direction of Federated Hermes i.e., Federated Hermes and Calvert Global go up and down completely randomly.
Pair Corralation between Federated Hermes and Calvert Global
Assuming the 90 days horizon Federated Hermes Conservative is expected to generate 0.1 times more return on investment than Calvert Global. However, Federated Hermes Conservative is 10.41 times less risky than Calvert Global. It trades about 0.2 of its potential returns per unit of risk. Calvert Global Energy is currently generating about -0.03 per unit of risk. If you would invest 984.00 in Federated Hermes Conservative on November 2, 2024 and sell it today you would earn a total of 18.00 from holding Federated Hermes Conservative or generate 1.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Federated Hermes Conservative vs. Calvert Global Energy
Performance |
| Timeline |
| Federated Hermes Con |
| Calvert Global Energy |
Federated Hermes and Calvert Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federated Hermes and Calvert Global
The main advantage of trading using opposite Federated Hermes and Calvert Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federated Hermes position performs unexpectedly, Calvert Global 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 Calvert Global will offset losses from the drop in Calvert Global's long position.| Federated Hermes vs. Upright Assets Allocation | Federated Hermes vs. Pnc Balanced Allocation | Federated Hermes vs. Enhanced Large Pany | Federated Hermes vs. Hartford Moderate Allocation |
| Calvert Global vs. Energy Services Fund | Calvert Global vs. Allianzgi Global Natural | Calvert Global vs. Oil Gas Ultrasector | Calvert Global vs. Transamerica Mlp Energy |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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