Correlation Between Federated Hermes and Oppenheimer Main
Can any of the company-specific risk be diversified away by investing in both Federated Hermes and Oppenheimer Main 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 Main 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 Main Strt, you can compare the effects of market volatilities on Federated Hermes and Oppenheimer Main 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 Main. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federated Hermes and Oppenheimer Main.
Diversification Opportunities for Federated Hermes and Oppenheimer Main
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Federated and Oppenheimer is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Federated Hermes Inflation and Oppenheimer Main Strt in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppenheimer Main Strt 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 Main. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oppenheimer Main Strt has no effect on the direction of Federated Hermes i.e., Federated Hermes and Oppenheimer Main go up and down completely randomly.
Pair Corralation between Federated Hermes and Oppenheimer Main
Assuming the 90 days horizon Federated Hermes is expected to generate 4.6 times less return on investment than Oppenheimer Main. But when comparing it to its historical volatility, Federated Hermes Inflation is 2.59 times less risky than Oppenheimer Main. It trades about 0.06 of its potential returns per unit of risk. Oppenheimer Main Strt is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 2,187 in Oppenheimer Main Strt on September 12, 2024 and sell it today you would earn a total of 786.00 from holding Oppenheimer Main Strt or generate 35.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Federated Hermes Inflation vs. Oppenheimer Main Strt
Performance |
| Timeline |
| Federated Hermes Inf |
| Oppenheimer Main Strt |
Federated Hermes and Oppenheimer Main Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federated Hermes and Oppenheimer Main
The main advantage of trading using opposite Federated Hermes and Oppenheimer Main positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federated Hermes position performs unexpectedly, Oppenheimer Main 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 Main will offset losses from the drop in Oppenheimer Main'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 |
| Oppenheimer Main vs. Federated Hermes Inflation | Oppenheimer Main vs. Lord Abbett Inflation | Oppenheimer Main vs. Guggenheim Managed Futures | Oppenheimer Main vs. Schwab Treasury 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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