Correlation Between Barings Global and Federated Hermes

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Barings Global 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 Barings Global and Federated Hermes into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Barings Global Emerging and Federated Hermes Inflation, you can compare the effects of market volatilities on Barings Global 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 Barings Global with a short position of Federated Hermes. Check out your portfolio center. Please also check ongoing floating volatility patterns of Barings Global and Federated Hermes.

Diversification Opportunities for Barings Global and Federated Hermes

BaringsFederatedDiversified AwayBaringsFederatedDiversified Away100%
0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Barings and Federated is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Barings Global Emerging 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 Barings Global 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 Barings Global Emerging 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 Barings Global i.e., Barings Global and Federated Hermes go up and down completely randomly.

Pair Corralation between Barings Global and Federated Hermes

If you would invest  986.00  in Barings Global Emerging on October 1, 2024 and sell it today you would earn a total of  0.00  from holding Barings Global Emerging or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy63.49%
ValuesDaily Returns

Barings Global Emerging  vs.  Federated Hermes Inflation

 Performance 
JavaScript chart by amCharts 3.21.15OctNovDec -3-2-10
JavaScript chart by amCharts 3.21.15BXQYX FIPRX
       Timeline  
Barings Global Emerging 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Barings Global Emerging has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Barings Global is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
Federated Hermes Inf 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Federated Hermes Inflation has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Federated Hermes is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
JavaScript chart by amCharts 3.21.15NovDecDec9.759.89.859.99.951010.05

Barings Global and Federated Hermes Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15 12345
JavaScript chart by amCharts 3.21.15BXQYX FIPRX
       Returns  

Pair Trading with Barings Global and Federated Hermes

The main advantage of trading using opposite Barings Global and Federated Hermes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Barings Global 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.
The idea behind Barings Global Emerging and Federated Hermes Inflation pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.

Other Complementary Tools

Money Managers
Screen money managers from public funds and ETFs managed around the world
Portfolio Comparator
Compare the composition, asset allocations and performance of any two portfolios in your account
CEOs Directory
Screen CEOs from public companies around the world
Sync Your Broker
Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors.
Portfolio File Import
Quickly import all of your third-party portfolios from your local drive in csv format