Correlation Between Federated Hermes and Oppenheimer International
Can any of the company-specific risk be diversified away by investing in both Federated Hermes and Oppenheimer International 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 Oppenheimer International 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 Oppenheimer International Growth, you can compare the effects of market volatilities on Federated Hermes and Oppenheimer International 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 Oppenheimer International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federated Hermes and Oppenheimer International.
Diversification Opportunities for Federated Hermes and Oppenheimer International
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Federated and Oppenheimer is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Federated Hermes Inflation and Oppenheimer International Grow in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppenheimer International 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 Oppenheimer International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oppenheimer International has no effect on the direction of Federated Hermes i.e., Federated Hermes and Oppenheimer International go up and down completely randomly.
Pair Corralation between Federated Hermes and Oppenheimer International
Assuming the 90 days horizon Federated Hermes is expected to generate 1.98 times less return on investment than Oppenheimer International. But when comparing it to its historical volatility, Federated Hermes Inflation is 2.64 times less risky than Oppenheimer International. It trades about 0.04 of its potential returns per unit of risk. Oppenheimer International Growth is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 3,453 in Oppenheimer International Growth on September 12, 2024 and sell it today you would earn a total of 271.00 from holding Oppenheimer International Growth or generate 7.85% 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. Oppenheimer International Grow
Performance |
| Timeline |
| Federated Hermes Inf |
| Oppenheimer International |
Federated Hermes and Oppenheimer International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federated Hermes and Oppenheimer International
The main advantage of trading using opposite Federated Hermes and Oppenheimer International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federated Hermes position performs unexpectedly, Oppenheimer International 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 Oppenheimer International will offset losses from the drop in Oppenheimer International'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 |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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