Correlation Between Federated Hermes and Federated Hermes

Can any of the company-specific risk be diversified away by investing in both Federated Hermes 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 Federated Hermes and Federated Hermes into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Federated Hermes ETF and Federated Hermes ETF, you can compare the effects of market volatilities on Federated Hermes 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 Federated Hermes with a short position of Federated Hermes. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federated Hermes and Federated Hermes.

Diversification Opportunities for Federated Hermes and Federated Hermes

0.32

Correlation Coefficient

Federated Hermes  Federated Hermes

Weak diversification

The 3 months correlation between Federated and Federated is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Federated Hermes ETF and Federated Hermes ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated Hermes ETF 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 ETF 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 ETF has no effect on the direction of Federated Hermes i.e., Federated Hermes and Federated Hermes go up and down completely randomly.

Pair Corralation between Federated Hermes and Federated Hermes

Given the investment horizon of 90 days Federated Hermes ETF is expected to generate 1.29 times more return on investment than Federated Hermes. However, Federated Hermes is 1.29 times more volatile than Federated Hermes ETF. It trades about 0.03 of its potential returns per unit of risk. Federated Hermes ETF is currently generating about -0.15 per unit of risk. If you would invest  2,302  in Federated Hermes ETF on October 9, 2024 and sell it today you would earn a total of  2.00  from holding Federated Hermes ETF or generate 0.09% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Federated Hermes ETF  vs.  Federated Hermes ETF

Federated Hermes ETF

Risk-Adjusted Performance

11 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Federated Hermes ETF are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Federated Hermes is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Federated Hermes ETF

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Federated Hermes ETF are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong basic indicators, Federated Hermes is not utilizing all of its potentials. The newest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Federated Hermes and Federated Hermes

The main advantage of trading using opposite Federated Hermes and Federated Hermes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federated Hermes 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 Federated Hermes ETF and Federated Hermes ETF 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.

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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.