Correlation Between Great-west Real and Federated Hermes
Can any of the company-specific risk be diversified away by investing in both Great-west Real 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 Great-west Real and Federated Hermes into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Great West Real Estate and Federated Hermes Inflation, you can compare the effects of market volatilities on Great-west Real 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 Great-west Real with a short position of Federated Hermes. Check out your portfolio center. Please also check ongoing floating volatility patterns of Great-west Real and Federated Hermes.
Diversification Opportunities for Great-west Real and Federated Hermes
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Great-west and Federated is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Great West Real Estate 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 Great-west Real 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 Great West Real Estate 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 Great-west Real i.e., Great-west Real and Federated Hermes go up and down completely randomly.
Pair Corralation between Great-west Real and Federated Hermes
Assuming the 90 days horizon Great West Real Estate is expected to generate 3.73 times more return on investment than Federated Hermes. However, Great-west Real is 3.73 times more volatile than Federated Hermes Inflation. It trades about 0.15 of its potential returns per unit of risk. Federated Hermes Inflation is currently generating about 0.0 per unit of risk. If you would invest 1,346 in Great West Real Estate on August 31, 2024 and sell it today you would earn a total of 42.00 from holding Great West Real Estate or generate 3.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Great West Real Estate vs. Federated Hermes Inflation
Performance |
| Timeline |
| Great West Real |
| Federated Hermes Inf |
Great-west Real and Federated Hermes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Great-west Real and Federated Hermes
The main advantage of trading using opposite Great-west Real and Federated Hermes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Great-west Real 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.| Great-west Real vs. Invesco Gold Special | Great-west Real vs. Goldman Sachs Clean | Great-west Real vs. Short Precious Metals | Great-west Real vs. James Balanced Golden |
| Federated Hermes vs. Dunham Real Estate | Federated Hermes vs. Fidelity Real Estate | Federated Hermes vs. Great West Real Estate | Federated Hermes vs. Forum Real Estate |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |