Correlation Between Jhancock Real and Federated Hermes
Can any of the company-specific risk be diversified away by investing in both Jhancock 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 Jhancock 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 Jhancock Real Estate and Federated Hermes Inflation, you can compare the effects of market volatilities on Jhancock 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 Jhancock Real with a short position of Federated Hermes. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jhancock Real and Federated Hermes.
Diversification Opportunities for Jhancock Real and Federated Hermes
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Jhancock and Federated is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Jhancock 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 Jhancock 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 Jhancock 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 Jhancock Real i.e., Jhancock Real and Federated Hermes go up and down completely randomly.
Pair Corralation between Jhancock Real and Federated Hermes
Assuming the 90 days horizon Jhancock Real Estate is expected to under-perform the Federated Hermes. In addition to that, Jhancock Real is 4.15 times more volatile than Federated Hermes Inflation. It trades about -0.48 of its total potential returns per unit of risk. Federated Hermes Inflation is currently generating about -0.27 per unit of volatility. If you would invest 988.00 in Federated Hermes Inflation on September 25, 2024 and sell it today you would lose (13.00) from holding Federated Hermes Inflation or give up 1.32% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Jhancock Real Estate vs. Federated Hermes Inflation
Performance |
Timeline |
Jhancock Real Estate |
Federated Hermes Inf |
Jhancock Real and Federated Hermes Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jhancock Real and Federated Hermes
The main advantage of trading using opposite Jhancock Real and Federated Hermes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jhancock 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.Jhancock Real vs. Aqr Long Short Equity | Jhancock Real vs. Barings Active Short | Jhancock Real vs. Quantitative Longshort Equity | Jhancock Real vs. Touchstone Ultra Short |
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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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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