Correlation Between Federated Hermes and General Money
Can any of the company-specific risk be diversified away by investing in both Federated Hermes and General Money 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 General Money into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Federated Hermes Emerging and General Money Market, you can compare the effects of market volatilities on Federated Hermes and General Money 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 General Money. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federated Hermes and General Money.
Diversification Opportunities for Federated Hermes and General Money
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Federated and General is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Federated Hermes Emerging and General Money Market in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on General Money Market 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 Emerging are associated (or correlated) with General Money. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of General Money Market has no effect on the direction of Federated Hermes i.e., Federated Hermes and General Money go up and down completely randomly.
Pair Corralation between Federated Hermes and General Money
If you would invest 1,598 in Federated Hermes Emerging on September 13, 2024 and sell it today you would earn a total of 4.00 from holding Federated Hermes Emerging or generate 0.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Federated Hermes Emerging vs. General Money Market
Performance |
| Timeline |
| Federated Hermes Emerging |
| General Money Market |
Federated Hermes and General Money Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federated Hermes and General Money
The main advantage of trading using opposite Federated Hermes and General Money positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federated Hermes position performs unexpectedly, General Money 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 General Money will offset losses from the drop in General Money's long position.| Federated Hermes vs. Aqr Small Cap | Federated Hermes vs. Touchstone Small Cap | Federated Hermes vs. Ab Small Cap | Federated Hermes vs. Glg Intl Small |
| General Money vs. Putnam Money Market | General Money vs. Cref Money Market | General Money vs. Ab Government Exchange | General Money vs. Money Market Obligations |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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