Correlation Between Federated Hermes and Harding Loevner
Can any of the company-specific risk be diversified away by investing in both Federated Hermes and Harding Loevner 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 Harding Loevner 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 Harding Loevner Global, you can compare the effects of market volatilities on Federated Hermes and Harding Loevner 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 Harding Loevner. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federated Hermes and Harding Loevner.
Diversification Opportunities for Federated Hermes and Harding Loevner
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Federated and Harding is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Federated Hermes Conservative and Harding Loevner Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harding Loevner Global 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 Harding Loevner. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harding Loevner Global has no effect on the direction of Federated Hermes i.e., Federated Hermes and Harding Loevner go up and down completely randomly.
Pair Corralation between Federated Hermes and Harding Loevner
If you would invest 4,489 in Harding Loevner Global on September 13, 2024 and sell it today you would earn a total of 90.00 from holding Harding Loevner Global or generate 2.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Federated Hermes Conservative vs. Harding Loevner Global
Performance |
| Timeline |
| Federated Hermes Con |
| Harding Loevner Global |
Federated Hermes and Harding Loevner Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federated Hermes and Harding Loevner
The main advantage of trading using opposite Federated Hermes and Harding Loevner positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federated Hermes position performs unexpectedly, Harding Loevner 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 Harding Loevner will offset losses from the drop in Harding Loevner's long position.| Federated Hermes vs. Federated Emerging Market | Federated Hermes vs. Federated Mdt All | Federated Hermes vs. Federated Mdt Balanced | Federated Hermes vs. Federated Global Allocation |
| Harding Loevner vs. Harding Loevner International | Harding Loevner vs. Harding Loevner Global | Harding Loevner vs. Harding Loevner International | Harding Loevner vs. Amg Timessquare International |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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