Correlation Between Federated Hermes and Simt Multi
Can any of the company-specific risk be diversified away by investing in both Federated Hermes and Simt Multi 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 Simt Multi 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 Simt Multi Asset Inflation, you can compare the effects of market volatilities on Federated Hermes and Simt Multi 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 Simt Multi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federated Hermes and Simt Multi.
Diversification Opportunities for Federated Hermes and Simt Multi
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Federated and Simt is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Federated Hermes Inflation and Simt Multi Asset Inflation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simt Multi Asset 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 Simt Multi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Simt Multi Asset has no effect on the direction of Federated Hermes i.e., Federated Hermes and Simt Multi go up and down completely randomly.
Pair Corralation between Federated Hermes and Simt Multi
Assuming the 90 days horizon Federated Hermes Inflation is expected to generate 1.16 times more return on investment than Simt Multi. However, Federated Hermes is 1.16 times more volatile than Simt Multi Asset Inflation. It trades about 0.08 of its potential returns per unit of risk. Simt Multi Asset Inflation is currently generating about 0.06 per unit of risk. If you would invest 963.00 in Federated Hermes Inflation on September 13, 2024 and sell it today you would earn a total of 28.00 from holding Federated Hermes Inflation or generate 2.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Federated Hermes Inflation vs. Simt Multi Asset Inflation
Performance |
| Timeline |
| Federated Hermes Inf |
| Simt Multi Asset |
Federated Hermes and Simt Multi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federated Hermes and Simt Multi
The main advantage of trading using opposite Federated Hermes and Simt Multi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federated Hermes position performs unexpectedly, Simt Multi 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 Simt Multi will offset losses from the drop in Simt Multi'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 |
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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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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