Correlation Between Federated Hermes and Catholic Values
Can any of the company-specific risk be diversified away by investing in both Federated Hermes and Catholic Values 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 Hermes and Catholic Values into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Federated Hermes Inflation and Catholic Values Fixed, you can compare the effects of market volatilities on Federated Hermes and Catholic Values 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 Hermes with a short position of Catholic Values. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federated Hermes and Catholic Values.
Diversification Opportunities for Federated Hermes and Catholic Values
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Federated and Catholic is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Federated Hermes Inflation and Catholic Values Fixed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catholic Values Fixed and Federated Hermes 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 Hermes Inflation are associated (or correlated) with Catholic Values. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catholic Values Fixed has no effect on the direction of Federated Hermes i.e., Federated Hermes and Catholic Values go up and down completely randomly.
Pair Corralation between Federated Hermes and Catholic Values
Assuming the 90 days horizon Federated Hermes Inflation is expected to under-perform the Catholic Values. But the mutual fund apears to be less risky and, when comparing its historical volatility, Federated Hermes Inflation is 1.35 times less risky than Catholic Values. The mutual fund trades about -0.14 of its potential returns per unit of risk. The Catholic Values Fixed is currently generating about -0.08 of returns per unit of risk over similar time horizon. If you would invest 858.00 in Catholic Values Fixed on September 23, 2024 and sell it today you would lose (5.00) from holding Catholic Values Fixed or give up 0.58% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Federated Hermes Inflation vs. Catholic Values Fixed
Performance |
Timeline |
Federated Hermes Inf |
Catholic Values Fixed |
Federated Hermes and Catholic Values Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Federated Hermes and Catholic Values
The main advantage of trading using opposite Federated Hermes and Catholic Values positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federated Hermes position performs unexpectedly, Catholic Values 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 Catholic Values will offset losses from the drop in Catholic Values' long position.Federated Hermes vs. Sp Midcap Index | Federated Hermes vs. T Rowe Price | Federated Hermes vs. Western Asset Diversified | Federated Hermes vs. Extended Market Index |
Catholic Values vs. American Funds Inflation | Catholic Values vs. Goldman Sachs Inflation | Catholic Values vs. Atac Inflation Rotation | Catholic Values vs. Federated Hermes Inflation |
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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