Correlation Between Greenspring Fund and Federated Hermes
Can any of the company-specific risk be diversified away by investing in both Greenspring Fund and Federated Hermes 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 Greenspring Fund and Federated Hermes into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Greenspring Fund Retail and Federated Hermes Conservative, you can compare the effects of market volatilities on Greenspring Fund and Federated Hermes 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 Greenspring Fund with a short position of Federated Hermes. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greenspring Fund and Federated Hermes.
Diversification Opportunities for Greenspring Fund and Federated Hermes
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Greenspring and Federated is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Greenspring Fund Retail and Federated Hermes Conservative in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated Hermes Con and Greenspring Fund 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 Greenspring Fund Retail are associated (or correlated) with Federated Hermes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federated Hermes Con has no effect on the direction of Greenspring Fund i.e., Greenspring Fund and Federated Hermes go up and down completely randomly.
Pair Corralation between Greenspring Fund and Federated Hermes
Assuming the 90 days horizon Greenspring Fund Retail is expected to generate 8.36 times more return on investment than Federated Hermes. However, Greenspring Fund is 8.36 times more volatile than Federated Hermes Conservative. It trades about 0.04 of its potential returns per unit of risk. Federated Hermes Conservative is currently generating about 0.25 per unit of risk. If you would invest 2,274 in Greenspring Fund Retail on October 28, 2024 and sell it today you would earn a total of 346.00 from holding Greenspring Fund Retail or generate 15.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Greenspring Fund Retail vs. Federated Hermes Conservative
Performance |
| Timeline |
| Greenspring Fund Retail |
| Federated Hermes Con |
Greenspring Fund and Federated Hermes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Greenspring Fund and Federated Hermes
The main advantage of trading using opposite Greenspring Fund and Federated Hermes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greenspring Fund position performs unexpectedly, Federated Hermes 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 Federated Hermes will offset losses from the drop in Federated Hermes' long position.| Greenspring Fund vs. Berwyn Income Fund | Greenspring Fund vs. Fpa Crescent Fund | Greenspring Fund vs. James Balanced Golden | Greenspring Fund vs. Permanent Portfolio Class |
| Federated Hermes vs. Oil Gas Ultrasector | Federated Hermes vs. Salient Mlp Energy | Federated Hermes vs. Pimco Energy Tactical | Federated Hermes vs. Clearbridge Energy Mlp |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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