Correlation Between Federated Hermes and Atac Inflation
Can any of the company-specific risk be diversified away by investing in both Federated Hermes and Atac 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 Atac Inflation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Federated Hermes Inflation and Atac Inflation Rotation, you can compare the effects of market volatilities on Federated Hermes and Atac 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 Atac Inflation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federated Hermes and Atac Inflation.
Diversification Opportunities for Federated Hermes and Atac Inflation
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Federated and Atac is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Federated Hermes Inflation and Atac Inflation Rotation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atac Inflation Rotation 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 Inflation are associated (or correlated) with Atac Inflation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atac Inflation Rotation has no effect on the direction of Federated Hermes i.e., Federated Hermes and Atac Inflation go up and down completely randomly.
Pair Corralation between Federated Hermes and Atac Inflation
Assuming the 90 days horizon Federated Hermes is expected to generate 51.43 times less return on investment than Atac Inflation. But when comparing it to its historical volatility, Federated Hermes Inflation is 7.82 times less risky than Atac Inflation. It trades about 0.04 of its potential returns per unit of risk. Atac Inflation Rotation is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 3,130 in Atac Inflation Rotation on August 30, 2024 and sell it today you would earn a total of 339.00 from holding Atac Inflation Rotation or generate 10.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Federated Hermes Inflation vs. Atac Inflation Rotation
Performance |
| Timeline |
| Federated Hermes Inf |
| Atac Inflation Rotation |
Federated Hermes and Atac Inflation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federated Hermes and Atac Inflation
The main advantage of trading using opposite Federated Hermes and Atac Inflation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federated Hermes position performs unexpectedly, Atac 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 Atac Inflation will offset losses from the drop in Atac Inflation's long position.| Federated Hermes vs. Touchstone Ohio Tax | Federated Hermes vs. Angel Oak Financial | Federated Hermes vs. John Hancock Money | Federated Hermes vs. Mirova Global Green |
| Atac Inflation vs. ATAC Rotation ETF | Atac Inflation vs. Tidal ETF Trust | Atac Inflation vs. Quadratic Interest Rate | Atac Inflation vs. Baron Global Advantage |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |