Correlation Between John Hancock and Federated Hermes
Can any of the company-specific risk be diversified away by investing in both John Hancock 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 John Hancock and Federated Hermes into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between John Hancock Money and Federated Hermes Inflation, you can compare the effects of market volatilities on John Hancock 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 John Hancock with a short position of Federated Hermes. Check out your portfolio center. Please also check ongoing floating volatility patterns of John Hancock and Federated Hermes.
Diversification Opportunities for John Hancock and Federated Hermes
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between John and Federated is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding John Hancock Money and Federated Hermes Inflation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated Hermes Inf and John Hancock 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 John Hancock Money 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 Inf has no effect on the direction of John Hancock i.e., John Hancock and Federated Hermes go up and down completely randomly.
Pair Corralation between John Hancock and Federated Hermes
If you would invest 985.00 in Federated Hermes Inflation on August 29, 2024 and sell it today you would earn a total of 1.00 from holding Federated Hermes Inflation or generate 0.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
John Hancock Money vs. Federated Hermes Inflation
Performance |
| Timeline |
| John Hancock Money |
| Federated Hermes Inf |
John Hancock and Federated Hermes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with John Hancock and Federated Hermes
The main advantage of trading using opposite John Hancock and Federated Hermes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if John Hancock 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.| John Hancock vs. Us Government Securities | John Hancock vs. Us Government Securities | John Hancock vs. Us Government Securities | John Hancock vs. Lord Abbett Government |
| Federated Hermes vs. Touchstone Ohio Tax | Federated Hermes vs. Angel Oak Financial | Federated Hermes vs. John Hancock Money | Federated Hermes vs. Mirova Global Green |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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