Correlation Between Federated Hermes and Western Asset
Can any of the company-specific risk be diversified away by investing in both Federated Hermes and Western Asset 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 Western Asset 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 Western Asset Oregon, you can compare the effects of market volatilities on Federated Hermes and Western Asset 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 Western Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federated Hermes and Western Asset.
Diversification Opportunities for Federated Hermes and Western Asset
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Federated and Western is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Federated Hermes Conservative and Western Asset Oregon in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Asset Oregon 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 Western Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Asset Oregon has no effect on the direction of Federated Hermes i.e., Federated Hermes and Western Asset go up and down completely randomly.
Pair Corralation between Federated Hermes and Western Asset
Assuming the 90 days horizon Federated Hermes Conservative is expected to generate 0.44 times more return on investment than Western Asset. However, Federated Hermes Conservative is 2.29 times less risky than Western Asset. It trades about 0.22 of its potential returns per unit of risk. Western Asset Oregon is currently generating about -0.02 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. Western Asset Oregon
Performance |
| Timeline |
| Federated Hermes Con |
| Western Asset Oregon |
Federated Hermes and Western Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federated Hermes and Western Asset
The main advantage of trading using opposite Federated Hermes and Western Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federated Hermes position performs unexpectedly, Western Asset 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 Western Asset will offset losses from the drop in Western Asset'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 |
| Western Asset vs. Rbb Fund | Western Asset vs. Morningstar Global Income | Western Asset vs. Pnc Balanced Allocation | Western Asset vs. L Abbett Growth |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |