Correlation Between Federated Hermes and Federated Intercontinental
Can any of the company-specific risk be diversified away by investing in both Federated Hermes and Federated Intercontinental 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 Intercontinental into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Federated Hermes Mdt and Federated Intercontinental Fund, you can compare the effects of market volatilities on Federated Hermes and Federated Intercontinental 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 Intercontinental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federated Hermes and Federated Intercontinental.
Diversification Opportunities for Federated Hermes and Federated Intercontinental
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Federated and Federated is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Federated Hermes Mdt and Federated Intercontinental Fun in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated Intercontinental 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 Mdt are associated (or correlated) with Federated Intercontinental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federated Intercontinental has no effect on the direction of Federated Hermes i.e., Federated Hermes and Federated Intercontinental go up and down completely randomly.
Pair Corralation between Federated Hermes and Federated Intercontinental
If you would invest (100.00) in Federated Intercontinental Fund on June 6, 2025 and sell it today you would earn a total of 100.00 from holding Federated Intercontinental Fund or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Federated Hermes Mdt vs. Federated Intercontinental Fun
Performance |
| Timeline |
| Federated Hermes Mdt |
| Federated Intercontinental |
Risk-Adjusted Performance
Weakest
Weak | Strong |
Federated Hermes and Federated Intercontinental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federated Hermes and Federated Intercontinental
The main advantage of trading using opposite Federated Hermes and Federated Intercontinental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federated Hermes position performs unexpectedly, Federated Intercontinental 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 Intercontinental will offset losses from the drop in Federated Intercontinental's long position.| Federated Hermes vs. Ms Global Fixed | Federated Hermes vs. Jhancock Global Equity | Federated Hermes vs. Alliancebernstein Global Highome | Federated Hermes vs. Morgan Stanley Global |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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