Correlation Between Us Government and Federated Hermes
Can any of the company-specific risk be diversified away by investing in both Us Government 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 Us Government and Federated Hermes into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Us Government Securities and Federated Hermes Conservative, you can compare the effects of market volatilities on Us Government 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 Us Government with a short position of Federated Hermes. Check out your portfolio center. Please also check ongoing floating volatility patterns of Us Government and Federated Hermes.
Diversification Opportunities for Us Government and Federated Hermes
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between USGFX and Federated is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Us Government Securities and Federated Hermes Conservative in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated Hermes Con and Us Government 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 Us Government Securities 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 Con has no effect on the direction of Us Government i.e., Us Government and Federated Hermes go up and down completely randomly.
Pair Corralation between Us Government and Federated Hermes
Assuming the 90 days horizon Us Government is expected to generate 3.9 times less return on investment than Federated Hermes. In addition to that, Us Government is 1.97 times more volatile than Federated Hermes Conservative. It trades about 0.02 of its total potential returns per unit of risk. Federated Hermes Conservative is currently generating about 0.17 per unit of volatility. If you would invest 992.00 in Federated Hermes Conservative on September 11, 2025 and sell it today you would earn a total of 10.00 from holding Federated Hermes Conservative or generate 1.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Us Government Securities vs. Federated Hermes Conservative
Performance |
| Timeline |
| Us Government Securities |
| Federated Hermes Con |
Us Government and Federated Hermes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Us Government and Federated Hermes
The main advantage of trading using opposite Us Government and Federated Hermes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Us Government 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.| Us Government vs. Franklin Small Cap | Us Government vs. Old Westbury Small | Us Government vs. Qs Small Capitalization | Us Government vs. Nuveen Nwq Smallmid Cap |
| Federated Hermes vs. Gmo Resources | Federated Hermes vs. Salient Mlp Energy | Federated Hermes vs. Hennessy Bp Energy | Federated Hermes vs. Invesco Energy Fund |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |