Correlation Between Federated Hermes and Mainstay Mon
Can any of the company-specific risk be diversified away by investing in both Federated Hermes and Mainstay Mon 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 Mainstay Mon 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 Mainstay Mon Stock, you can compare the effects of market volatilities on Federated Hermes and Mainstay Mon 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 Mainstay Mon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federated Hermes and Mainstay Mon.
Diversification Opportunities for Federated Hermes and Mainstay Mon
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Federated and Mainstay is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Federated Hermes Inflation and Mainstay Mon Stock in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Mon Stock 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 Mainstay Mon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Mon Stock has no effect on the direction of Federated Hermes i.e., Federated Hermes and Mainstay Mon go up and down completely randomly.
Pair Corralation between Federated Hermes and Mainstay Mon
Assuming the 90 days horizon Federated Hermes Inflation is expected to generate 0.27 times more return on investment than Mainstay Mon. However, Federated Hermes Inflation is 3.71 times less risky than Mainstay Mon. It trades about 0.22 of its potential returns per unit of risk. Mainstay Mon Stock is currently generating about -0.03 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 | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Federated Hermes Inflation vs. Mainstay Mon Stock
Performance |
| Timeline |
| Federated Hermes Inf |
| Mainstay Mon Stock |
Federated Hermes and Mainstay Mon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federated Hermes and Mainstay Mon
The main advantage of trading using opposite Federated Hermes and Mainstay Mon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federated Hermes position performs unexpectedly, Mainstay Mon 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 Mainstay Mon will offset losses from the drop in Mainstay Mon'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 |
| Mainstay Mon vs. Dreyfusstandish Global Fixed | Mainstay Mon vs. T Rowe Price | Mainstay Mon vs. Morningstar Defensive Bond | Mainstay Mon vs. T Rowe Price |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |