Correlation Between Federated Hermes and Dreyfus Floating
Can any of the company-specific risk be diversified away by investing in both Federated Hermes and Dreyfus Floating 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 Dreyfus Floating 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 Dreyfus Floating Rate, you can compare the effects of market volatilities on Federated Hermes and Dreyfus Floating 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 Dreyfus Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federated Hermes and Dreyfus Floating.
Diversification Opportunities for Federated Hermes and Dreyfus Floating
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Federated and Dreyfus is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Federated Hermes Inflation and Dreyfus Floating Rate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dreyfus Floating Rate 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 Dreyfus Floating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dreyfus Floating Rate has no effect on the direction of Federated Hermes i.e., Federated Hermes and Dreyfus Floating go up and down completely randomly.
Pair Corralation between Federated Hermes and Dreyfus Floating
Assuming the 90 days horizon Federated Hermes is expected to generate 3.11 times less return on investment than Dreyfus Floating. In addition to that, Federated Hermes is 4.25 times more volatile than Dreyfus Floating Rate. It trades about 0.04 of its total potential returns per unit of risk. Dreyfus Floating Rate is currently generating about 0.49 per unit of volatility. If you would invest 967.00 in Dreyfus Floating Rate on September 12, 2024 and sell it today you would earn a total of 147.00 from holding Dreyfus Floating Rate or generate 15.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 99.72% |
| Values | Daily Returns |
Federated Hermes Inflation vs. Dreyfus Floating Rate
Performance |
| Timeline |
| Federated Hermes Inf |
| Dreyfus Floating Rate |
Federated Hermes and Dreyfus Floating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federated Hermes and Dreyfus Floating
The main advantage of trading using opposite Federated Hermes and Dreyfus Floating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federated Hermes position performs unexpectedly, Dreyfus Floating 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 Dreyfus Floating will offset losses from the drop in Dreyfus Floating's long position.| Federated Hermes vs. Ab Bond Inflation | Federated Hermes vs. Blackrock Inflation Protected | Federated Hermes vs. Arrow Managed Futures | Federated Hermes vs. Lord Abbett Inflation |
| Dreyfus Floating vs. Deutsche Global Inflation | Dreyfus Floating vs. Atac Inflation Rotation | Dreyfus Floating vs. Short Duration Inflation | Dreyfus Floating vs. Federated Hermes Inflation |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |