Correlation Between Federated Hermes and Eventide Core
Can any of the company-specific risk be diversified away by investing in both Federated Hermes and Eventide Core 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 Eventide Core 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 Eventide Core Bond, you can compare the effects of market volatilities on Federated Hermes and Eventide Core 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 Eventide Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federated Hermes and Eventide Core.
Diversification Opportunities for Federated Hermes and Eventide Core
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Federated and Eventide is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Federated Hermes Inflation and Eventide Core Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eventide Core Bond 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 Eventide Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eventide Core Bond has no effect on the direction of Federated Hermes i.e., Federated Hermes and Eventide Core go up and down completely randomly.
Pair Corralation between Federated Hermes and Eventide Core
Assuming the 90 days horizon Federated Hermes is expected to generate 1.34 times less return on investment than Eventide Core. But when comparing it to its historical volatility, Federated Hermes Inflation is 1.18 times less risky than Eventide Core. It trades about 0.22 of its potential returns per unit of risk. Eventide Core Bond is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 813.00 in Eventide Core Bond on September 13, 2024 and sell it today you would earn a total of 10.00 from holding Eventide Core Bond or generate 1.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Federated Hermes Inflation vs. Eventide Core Bond
Performance |
| Timeline |
| Federated Hermes Inf |
| Eventide Core Bond |
Federated Hermes and Eventide Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federated Hermes and Eventide Core
The main advantage of trading using opposite Federated Hermes and Eventide Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federated Hermes position performs unexpectedly, Eventide Core 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 Eventide Core will offset losses from the drop in Eventide Core's long position.| Federated Hermes vs. Gabelli Convertible And | Federated Hermes vs. Putnam Convertible Incm Gwth | Federated Hermes vs. Allianzgi Convertible Income | Federated Hermes vs. Rationalpier 88 Convertible |
| Eventide Core vs. Franklin Gold Precious | Eventide Core vs. James Balanced Golden | Eventide Core vs. Great West Goldman Sachs | Eventide Core vs. Global Gold Fund |
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 Positions Ratings module to 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.
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