Correlation Between Hanlon Tactical and Federated Hermes
Can any of the company-specific risk be diversified away by investing in both Hanlon Tactical 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 Hanlon Tactical and Federated Hermes into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hanlon Tactical Dividend and Federated Hermes Conservative, you can compare the effects of market volatilities on Hanlon Tactical 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 Hanlon Tactical with a short position of Federated Hermes. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanlon Tactical and Federated Hermes.
Diversification Opportunities for Hanlon Tactical and Federated Hermes
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Hanlon and Federated is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Hanlon Tactical Dividend 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 Hanlon Tactical 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 Hanlon Tactical Dividend 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 Hanlon Tactical i.e., Hanlon Tactical and Federated Hermes go up and down completely randomly.
Pair Corralation between Hanlon Tactical and Federated Hermes
Assuming the 90 days horizon Hanlon Tactical Dividend is expected to generate 8.36 times more return on investment than Federated Hermes. However, Hanlon Tactical is 8.36 times more volatile than Federated Hermes Conservative. It trades about 0.06 of its potential returns per unit of risk. Federated Hermes Conservative is currently generating about 0.22 per unit of risk. If you would invest 1,273 in Hanlon Tactical Dividend on October 25, 2024 and sell it today you would earn a total of 11.00 from holding Hanlon Tactical Dividend or generate 0.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hanlon Tactical Dividend vs. Federated Hermes Conservative
Performance |
| Timeline |
| Hanlon Tactical Dividend |
| Federated Hermes Con |
Hanlon Tactical and Federated Hermes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanlon Tactical and Federated Hermes
The main advantage of trading using opposite Hanlon Tactical and Federated Hermes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanlon Tactical 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.| Hanlon Tactical vs. Federated Hermes Conservative | Hanlon Tactical vs. Vy T Rowe | Hanlon Tactical vs. Lord Abbett Diversified | Hanlon Tactical vs. Wells Fargo Diversified |
| Federated Hermes vs. Pimco Short Term Fund | Federated Hermes vs. Short Term Fund Institutional | Federated Hermes vs. Short Term Fund Administrative | Federated Hermes vs. Short Term Fund R |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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