Correlation Between Federated Hermes and Siit Real
Can any of the company-specific risk be diversified away by investing in both Federated Hermes and Siit Real 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 Siit Real 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 Siit Real Return, you can compare the effects of market volatilities on Federated Hermes and Siit Real 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 Siit Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federated Hermes and Siit Real.
Diversification Opportunities for Federated Hermes and Siit Real
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Federated and Siit is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Federated Hermes Inflation and Siit Real Return in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siit Real Return 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 Siit Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siit Real Return has no effect on the direction of Federated Hermes i.e., Federated Hermes and Siit Real go up and down completely randomly.
Pair Corralation between Federated Hermes and Siit Real
Assuming the 90 days horizon Federated Hermes is expected to generate 1.05 times less return on investment than Siit Real. In addition to that, Federated Hermes is 2.38 times more volatile than Siit Real Return. It trades about 0.06 of its total potential returns per unit of risk. Siit Real Return is currently generating about 0.14 per unit of volatility. If you would invest 917.00 in Siit Real Return on August 27, 2024 and sell it today you would earn a total of 3.00 from holding Siit Real Return or generate 0.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Federated Hermes Inflation vs. Siit Real Return
Performance |
| Timeline |
| Federated Hermes Inf |
| Siit Real Return |
Federated Hermes and Siit Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federated Hermes and Siit Real
The main advantage of trading using opposite Federated Hermes and Siit Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federated Hermes position performs unexpectedly, Siit Real 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 Siit Real will offset losses from the drop in Siit Real's long position.| Federated Hermes vs. Deutsche Health And | Federated Hermes vs. Alphacentric Lifesci Healthcare | Federated Hermes vs. Baron Health Care | Federated Hermes vs. Allianzgi Health Sciences |
| Siit Real vs. Nuveen Winslow Large Cap | Siit Real vs. Qs Large Cap | Siit Real vs. Rational Strategic Allocation | Siit Real vs. Old Westbury Large |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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