Correlation Between Federated Hermes and Mfs New
Can any of the company-specific risk be diversified away by investing in both Federated Hermes and Mfs New 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 Mfs New 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 Mfs New Discovery, you can compare the effects of market volatilities on Federated Hermes and Mfs New 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 Mfs New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federated Hermes and Mfs New.
Diversification Opportunities for Federated Hermes and Mfs New
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Federated and Mfs is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Federated Hermes Inflation and Mfs New Discovery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs New Discovery 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 Mfs New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs New Discovery has no effect on the direction of Federated Hermes i.e., Federated Hermes and Mfs New go up and down completely randomly.
Pair Corralation between Federated Hermes and Mfs New
Assuming the 90 days horizon Federated Hermes Inflation is expected to generate 0.2 times more return on investment than Mfs New. However, Federated Hermes Inflation is 4.95 times less risky than Mfs New. It trades about 0.22 of its potential returns per unit of risk. Mfs New Discovery is currently generating about -0.01 per unit of risk. If you would invest 982.00 in Federated Hermes Inflation on September 13, 2024 and sell it today you would earn a total of 9.00 from holding Federated Hermes Inflation or generate 0.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Federated Hermes Inflation vs. Mfs New Discovery
Performance |
| Timeline |
| Federated Hermes Inf |
| Mfs New Discovery |
Federated Hermes and Mfs New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federated Hermes and Mfs New
The main advantage of trading using opposite Federated Hermes and Mfs New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federated Hermes position performs unexpectedly, Mfs New 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 Mfs New will offset losses from the drop in Mfs New'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 |
| Mfs New vs. Mfs Prudent Investor | Mfs New vs. Mfs Prudent Investor | Mfs New vs. Mfs Prudent Investor | Mfs New vs. Mfs Prudent Investor |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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