Correlation Between Virtus Convertible and Federated Hermes
Can any of the company-specific risk be diversified away by investing in both Virtus Convertible 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 Virtus Convertible and Federated Hermes into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Virtus Convertible and Federated Hermes Conservative, you can compare the effects of market volatilities on Virtus Convertible 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 Virtus Convertible with a short position of Federated Hermes. Check out your portfolio center. Please also check ongoing floating volatility patterns of Virtus Convertible and Federated Hermes.
Diversification Opportunities for Virtus Convertible and Federated Hermes
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Virtus and Federated is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Virtus Convertible 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 Virtus Convertible 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 Virtus Convertible 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 Virtus Convertible i.e., Virtus Convertible and Federated Hermes go up and down completely randomly.
Pair Corralation between Virtus Convertible and Federated Hermes
If you would invest 3,568 in Virtus Convertible on September 19, 2024 and sell it today you would earn a total of 148.00 from holding Virtus Convertible or generate 4.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Virtus Convertible vs. Federated Hermes Conservative
Performance |
| Timeline |
| Virtus Convertible |
| Federated Hermes Con |
Virtus Convertible and Federated Hermes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Virtus Convertible and Federated Hermes
The main advantage of trading using opposite Virtus Convertible and Federated Hermes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Virtus Convertible 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.| Virtus Convertible vs. Intermediate Government Bond | Virtus Convertible vs. Virtus Seix Government | Virtus Convertible vs. Hsbc Government Money | Virtus Convertible vs. Dreyfus Government Cash |
| Federated Hermes vs. Gabelli Convertible And | Federated Hermes vs. Advent Claymore Convertible | Federated Hermes vs. Virtus Convertible | Federated Hermes vs. Fidelity Sai Convertible |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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