Correlation Between Federated Hermes and Calvert Short
Can any of the company-specific risk be diversified away by investing in both Federated Hermes and Calvert Short 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 Calvert Short into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Federated Hermes Conservative and Calvert Short Duration, you can compare the effects of market volatilities on Federated Hermes and Calvert Short 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 Calvert Short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federated Hermes and Calvert Short.
Diversification Opportunities for Federated Hermes and Calvert Short
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Federated and Calvert is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Federated Hermes Conservative and Calvert Short Duration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calvert Short Duration 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 Conservative are associated (or correlated) with Calvert Short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calvert Short Duration has no effect on the direction of Federated Hermes i.e., Federated Hermes and Calvert Short go up and down completely randomly.
Pair Corralation between Federated Hermes and Calvert Short
Assuming the 90 days horizon Federated Hermes is expected to generate 2.03 times less return on investment than Calvert Short. But when comparing it to its historical volatility, Federated Hermes Conservative is 1.65 times less risky than Calvert Short. It trades about 0.18 of its potential returns per unit of risk. Calvert Short Duration is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 1,566 in Calvert Short Duration on June 1, 2025 and sell it today you would earn a total of 29.00 from holding Calvert Short Duration or generate 1.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Federated Hermes Conservative vs. Calvert Short Duration
Performance |
| Timeline |
| Federated Hermes Con |
| Calvert Short Duration |
Federated Hermes and Calvert Short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federated Hermes and Calvert Short
The main advantage of trading using opposite Federated Hermes and Calvert Short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federated Hermes position performs unexpectedly, Calvert Short 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 Calvert Short will offset losses from the drop in Calvert Short's long position.| Federated Hermes vs. Health Care Ultrasector | Federated Hermes vs. Live Oak Health | Federated Hermes vs. The Hartford Healthcare | Federated Hermes vs. Fidelity Advisor Health |
| Calvert Short vs. Deutsche Gold Precious | Calvert Short vs. Gold And Precious | Calvert Short vs. James Balanced Golden | Calvert Short vs. Sprott Gold Equity |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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