Correlation Between Federated Hermes and Federated Hermes
Can any of the company-specific risk be diversified away by investing in both Federated Hermes 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 Federated Hermes and Federated Hermes into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Federated Hermes Sdg and Federated Hermes Mdt, you can compare the effects of market volatilities on Federated Hermes 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 Federated Hermes with a short position of Federated Hermes. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federated Hermes and Federated Hermes.
Diversification Opportunities for Federated Hermes and Federated Hermes
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Federated and Federated is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Federated Hermes Sdg and Federated Hermes Mdt in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated Hermes Mdt 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 Sdg 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 Mdt has no effect on the direction of Federated Hermes i.e., Federated Hermes and Federated Hermes go up and down completely randomly.
Pair Corralation between Federated Hermes and Federated Hermes
Assuming the 90 days horizon Federated Hermes Sdg is expected to under-perform the Federated Hermes. In addition to that, Federated Hermes is 2.44 times more volatile than Federated Hermes Mdt. It trades about -0.02 of its total potential returns per unit of risk. Federated Hermes Mdt is currently generating about 0.14 per unit of volatility. If you would invest 1,819 in Federated Hermes Mdt on November 28, 2024 and sell it today you would earn a total of 174.00 from holding Federated Hermes Mdt or generate 9.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Federated Hermes Sdg vs. Federated Hermes Mdt
Performance |
| Timeline |
| Federated Hermes Sdg |
| Federated Hermes Mdt |
Federated Hermes and Federated Hermes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federated Hermes and Federated Hermes
The main advantage of trading using opposite Federated Hermes and Federated Hermes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federated Hermes 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.| Federated Hermes vs. Nt International Small Mid | Federated Hermes vs. Champlain Small | Federated Hermes vs. Franklin Small Cap | Federated Hermes vs. Touchstone Small Cap |
| Federated Hermes vs. Ashmore Emerging Markets | Federated Hermes vs. Inverse Mid Cap Strategy | Federated Hermes vs. Fidelity Small Cap | Federated Hermes vs. T Rowe Price |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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