Correlation Between Federated Intercontinental and Federated Hermes
Can any of the company-specific risk be diversified away by investing in both Federated Intercontinental 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 Federated Intercontinental and Federated Hermes into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Federated Intercontinental Fund and Federated Hermes Sdg, you can compare the effects of market volatilities on Federated Intercontinental 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 Federated Intercontinental with a short position of Federated Hermes. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federated Intercontinental and Federated Hermes.
Diversification Opportunities for Federated Intercontinental and Federated Hermes
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Federated and Federated is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Federated Intercontinental Fun and Federated Hermes Sdg in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated Hermes Sdg and Federated Intercontinental 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 Intercontinental Fund 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 Sdg has no effect on the direction of Federated Intercontinental i.e., Federated Intercontinental and Federated Hermes go up and down completely randomly.
Pair Corralation between Federated Intercontinental and Federated Hermes
If you would invest 1,191 in Federated Hermes Sdg on September 3, 2024 and sell it today you would earn a total of 269.00 from holding Federated Hermes Sdg or generate 22.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Federated Intercontinental Fun vs. Federated Hermes Sdg
Performance |
| Timeline |
| Federated Intercontinental |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Federated Hermes Sdg |
Federated Intercontinental and Federated Hermes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federated Intercontinental and Federated Hermes
The main advantage of trading using opposite Federated Intercontinental and Federated Hermes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federated Intercontinental 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.| Federated Intercontinental vs. Europac Gold Fund | Federated Intercontinental vs. Invesco Gold Special | Federated Intercontinental vs. James Balanced Golden | Federated Intercontinental vs. Gabelli Gold Fund |
| Federated Hermes vs. Issachar Fund Class | Federated Hermes vs. Fm Investments Large | Federated Hermes vs. T Rowe Price | Federated Hermes vs. William Blair 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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