Correlation Between Federated Hermes and Guidepath Managed
Can any of the company-specific risk be diversified away by investing in both Federated Hermes and Guidepath Managed 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 Guidepath Managed 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 Guidepath Managed Futures, you can compare the effects of market volatilities on Federated Hermes and Guidepath Managed 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 Guidepath Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federated Hermes and Guidepath Managed.
Diversification Opportunities for Federated Hermes and Guidepath Managed
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Federated and Guidepath is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Federated Hermes Inflation and Guidepath Managed Futures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guidepath Managed Futures 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 Guidepath Managed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guidepath Managed Futures has no effect on the direction of Federated Hermes i.e., Federated Hermes and Guidepath Managed go up and down completely randomly.
Pair Corralation between Federated Hermes and Guidepath Managed
Assuming the 90 days horizon Federated Hermes is expected to generate 1.91 times less return on investment than Guidepath Managed. But when comparing it to its historical volatility, Federated Hermes Inflation is 2.41 times less risky than Guidepath Managed. It trades about 0.13 of its potential returns per unit of risk. Guidepath Managed Futures is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 783.00 in Guidepath Managed Futures on September 13, 2024 and sell it today you would earn a total of 9.00 from holding Guidepath Managed Futures or generate 1.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Federated Hermes Inflation vs. Guidepath Managed Futures
Performance |
| Timeline |
| Federated Hermes Inf |
| Guidepath Managed Futures |
Federated Hermes and Guidepath Managed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federated Hermes and Guidepath Managed
The main advantage of trading using opposite Federated Hermes and Guidepath Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federated Hermes position performs unexpectedly, Guidepath Managed 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 Guidepath Managed will offset losses from the drop in Guidepath Managed's long position.| Federated Hermes vs. Commodities Strategy Fund | Federated Hermes vs. Eic Value Fund | Federated Hermes vs. T Rowe Price | Federated Hermes vs. Rbb Fund |
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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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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