Correlation Between Deutsche Gold and Federated Hermes
Can any of the company-specific risk be diversified away by investing in both Deutsche Gold 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 Deutsche Gold and Federated Hermes into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Deutsche Gold Precious and Federated Hermes Emerging, you can compare the effects of market volatilities on Deutsche Gold 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 Deutsche Gold with a short position of Federated Hermes. Check out your portfolio center. Please also check ongoing floating volatility patterns of Deutsche Gold and Federated Hermes.
Diversification Opportunities for Deutsche Gold and Federated Hermes
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Deutsche and Federated is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Deutsche Gold Precious and Federated Hermes Emerging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated Hermes Emerging and Deutsche Gold 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 Deutsche Gold Precious 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 Emerging has no effect on the direction of Deutsche Gold i.e., Deutsche Gold and Federated Hermes go up and down completely randomly.
Pair Corralation between Deutsche Gold and Federated Hermes
Assuming the 90 days horizon Deutsche Gold Precious is expected to generate 1.73 times more return on investment than Federated Hermes. However, Deutsche Gold is 1.73 times more volatile than Federated Hermes Emerging. It trades about 0.14 of its potential returns per unit of risk. Federated Hermes Emerging is currently generating about 0.14 per unit of risk. If you would invest 8,114 in Deutsche Gold Precious on June 5, 2025 and sell it today you would earn a total of 1,028 from holding Deutsche Gold Precious or generate 12.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Deutsche Gold Precious vs. Federated Hermes Emerging
Performance |
| Timeline |
| Deutsche Gold Precious |
| Federated Hermes Emerging |
Deutsche Gold and Federated Hermes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Deutsche Gold and Federated Hermes
The main advantage of trading using opposite Deutsche Gold and Federated Hermes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Deutsche Gold 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.| Deutsche Gold vs. Voya Target Retirement | Deutsche Gold vs. Moderate Balanced Allocation | Deutsche Gold vs. American Funds Retirement | Deutsche Gold vs. Deutsche Multi Asset Moderate |
| Federated Hermes vs. Balanced Fund Retail | Federated Hermes vs. Barings Active Short | Federated Hermes vs. Omni Small Cap Value | Federated Hermes vs. Rbc Emerging Markets |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| CEOs Directory Screen CEOs from public companies around the world | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |