Correlation Between Federated Hermes and Neuberger Berman
Can any of the company-specific risk be diversified away by investing in both Federated Hermes and Neuberger Berman 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 Neuberger Berman 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 Neuberger Berman Absolute, you can compare the effects of market volatilities on Federated Hermes and Neuberger Berman 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 Neuberger Berman. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federated Hermes and Neuberger Berman.
Diversification Opportunities for Federated Hermes and Neuberger Berman
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Federated and Neuberger is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Federated Hermes Inflation and Neuberger Berman Absolute in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neuberger Berman Absolute 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 Neuberger Berman. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Neuberger Berman Absolute has no effect on the direction of Federated Hermes i.e., Federated Hermes and Neuberger Berman go up and down completely randomly.
Pair Corralation between Federated Hermes and Neuberger Berman
Assuming the 90 days horizon Federated Hermes Inflation is expected to generate 1.56 times more return on investment than Neuberger Berman. However, Federated Hermes is 1.56 times more volatile than Neuberger Berman Absolute. It trades about 0.06 of its potential returns per unit of risk. Neuberger Berman Absolute is currently generating about 0.08 per unit of risk. If you would invest 928.00 in Federated Hermes Inflation on September 12, 2024 and sell it today you would earn a total of 65.00 from holding Federated Hermes Inflation or generate 7.0% 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. Neuberger Berman Absolute
Performance |
| Timeline |
| Federated Hermes Inf |
| Neuberger Berman Absolute |
Federated Hermes and Neuberger Berman Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federated Hermes and Neuberger Berman
The main advantage of trading using opposite Federated Hermes and Neuberger Berman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federated Hermes position performs unexpectedly, Neuberger Berman 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 Neuberger Berman will offset losses from the drop in Neuberger Berman'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 |
| Neuberger Berman vs. Lord Abbett Inflation | Neuberger Berman vs. Federated Hermes Inflation | Neuberger Berman vs. Fidelity Sai Inflationfocused | Neuberger Berman vs. Atac Inflation Rotation |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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